Correlation Between Turcas Petrol and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Turcas Petrol and Koza Anadolu 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 Turcas Petrol and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turcas Petrol AS and Koza Anadolu Metal, you can compare the effects of market volatilities on Turcas Petrol and Koza Anadolu 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 Turcas Petrol with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turcas Petrol and Koza Anadolu.
Diversification Opportunities for Turcas Petrol and Koza Anadolu
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turcas and Koza is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Turcas Petrol AS and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and Turcas Petrol 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 Turcas Petrol AS are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Turcas Petrol i.e., Turcas Petrol and Koza Anadolu go up and down completely randomly.
Pair Corralation between Turcas Petrol and Koza Anadolu
Assuming the 90 days trading horizon Turcas Petrol is expected to generate 1.42 times less return on investment than Koza Anadolu. But when comparing it to its historical volatility, Turcas Petrol AS is 1.01 times less risky than Koza Anadolu. It trades about 0.03 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,720 in Koza Anadolu Metal on August 31, 2024 and sell it today you would earn a total of 2,325 from holding Koza Anadolu Metal or generate 49.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turcas Petrol AS vs. Koza Anadolu Metal
Performance |
| Timeline |
| Turcas Petrol AS |
| Koza Anadolu Metal |
Turcas Petrol and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turcas Petrol and Koza Anadolu
The main advantage of trading using opposite Turcas Petrol and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turcas Petrol position performs unexpectedly, Koza Anadolu 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 Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| Turcas Petrol vs. Galatasaray Sportif Sinai | Turcas Petrol vs. Cuhadaroglu Metal Sanayi | Turcas Petrol vs. Politeknik Metal Sanayi | Turcas Petrol vs. Koza Anadolu Metal |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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