Correlation Between Turk Traktor and Kordsa Global
Can any of the company-specific risk be diversified away by investing in both Turk Traktor and Kordsa Global 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 Turk Traktor and Kordsa Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Traktor ve and Kordsa Global Endustriyel, you can compare the effects of market volatilities on Turk Traktor and Kordsa Global 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 Turk Traktor with a short position of Kordsa Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Traktor and Kordsa Global.
Diversification Opportunities for Turk Traktor and Kordsa Global
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turk and Kordsa is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Turk Traktor ve and Kordsa Global Endustriyel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordsa Global Endustriyel and Turk Traktor 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 Turk Traktor ve are associated (or correlated) with Kordsa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordsa Global Endustriyel has no effect on the direction of Turk Traktor i.e., Turk Traktor and Kordsa Global go up and down completely randomly.
Pair Corralation between Turk Traktor and Kordsa Global
Assuming the 90 days trading horizon Turk Traktor ve is expected to generate 0.99 times more return on investment than Kordsa Global. However, Turk Traktor ve is 1.01 times less risky than Kordsa Global. It trades about 0.29 of its potential returns per unit of risk. Kordsa Global Endustriyel is currently generating about -0.02 per unit of risk. If you would invest 69,620 in Turk Traktor ve on September 1, 2024 and sell it today you would earn a total of 8,180 from holding Turk Traktor ve or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Traktor ve vs. Kordsa Global Endustriyel
Performance |
| Timeline |
| Turk Traktor ve |
| Kordsa Global Endustriyel |
Turk Traktor and Kordsa Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Traktor and Kordsa Global
The main advantage of trading using opposite Turk Traktor and Kordsa Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Traktor position performs unexpectedly, Kordsa Global 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 Kordsa Global will offset losses from the drop in Kordsa Global's long position.| Turk Traktor vs. Turkiye Petrol Rafinerileri | Turk Traktor vs. Turkiye Sise ve | Turk Traktor vs. Eregli Demir ve |
| Kordsa Global vs. Aksa Akrilik Kimya | Kordsa Global vs. Turkiye Sise ve | Kordsa Global vs. Eregli Demir ve | Kordsa Global vs. Tofas Turk Otomobil |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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