Correlation Between Tekfen Holding and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Kardemir Karabuk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tekfen Holding and Kardemir Karabuk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekfen Holding AS and Kardemir Karabuk Demir, you can compare the effects of market volatilities on Tekfen Holding and Kardemir Karabuk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tekfen Holding with a short position of Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Kardemir Karabuk.
Diversification Opportunities for Tekfen Holding and Kardemir Karabuk
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tekfen and Kardemir is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir and Tekfen Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tekfen Holding AS are associated (or correlated) with Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Tekfen Holding and Kardemir Karabuk
Assuming the 90 days trading horizon Tekfen Holding is expected to generate 2.44 times less return on investment than Kardemir Karabuk. In addition to that, Tekfen Holding is 1.07 times more volatile than Kardemir Karabuk Demir. It trades about 0.09 of its total potential returns per unit of risk. Kardemir Karabuk Demir is currently generating about 0.24 per unit of volatility. If you would invest 2,452 in Kardemir Karabuk Demir on August 28, 2024 and sell it today you would earn a total of 288.00 from holding Kardemir Karabuk Demir or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekfen Holding AS vs. Kardemir Karabuk Demir
Performance |
| Timeline |
| Tekfen Holding AS |
| Kardemir Karabuk Demir |
Tekfen Holding and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Kardemir Karabuk
The main advantage of trading using opposite Tekfen Holding and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Kardemir Karabuk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.| Tekfen Holding vs. QNB Finans Finansal | Tekfen Holding vs. Pamel Yenilenebilir Elektrik | Tekfen Holding vs. Brisa Bridgestone Sabanci | Tekfen Holding vs. Dogus Gayrimenkul Yatirim |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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