Correlation Between Turkiye Sigorta and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Turkiye Sigorta and Konya Cimento 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 Turkiye Sigorta and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sigorta AS and Konya Cimento Sanayi, you can compare the effects of market volatilities on Turkiye Sigorta and Konya Cimento 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 Turkiye Sigorta with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sigorta and Konya Cimento.
Diversification Opportunities for Turkiye Sigorta and Konya Cimento
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turkiye and Konya is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sigorta AS and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Turkiye Sigorta 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 Turkiye Sigorta AS are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Turkiye Sigorta i.e., Turkiye Sigorta and Konya Cimento go up and down completely randomly.
Pair Corralation between Turkiye Sigorta and Konya Cimento
Assuming the 90 days trading horizon Turkiye Sigorta AS is expected to generate 1.38 times more return on investment than Konya Cimento. However, Turkiye Sigorta is 1.38 times more volatile than Konya Cimento Sanayi. It trades about -0.02 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about -0.06 per unit of risk. If you would invest 1,833 in Turkiye Sigorta AS on November 1, 2024 and sell it today you would lose (43.00) from holding Turkiye Sigorta AS or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sigorta AS vs. Konya Cimento Sanayi
Performance |
| Timeline |
| Turkiye Sigorta AS |
| Konya Cimento Sanayi |
Turkiye Sigorta and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sigorta and Konya Cimento
The main advantage of trading using opposite Turkiye Sigorta and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sigorta position performs unexpectedly, Konya Cimento 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 Konya Cimento will offset losses from the drop in Konya Cimento's long position.| Turkiye Sigorta vs. Turk Telekomunikasyon AS | Turkiye Sigorta vs. Tekfen Holding AS | Turkiye Sigorta vs. Enerjisa Enerji AS | Turkiye Sigorta vs. Haci Omer Sabanci |
| Konya Cimento vs. Ege Endustri ve | Konya Cimento vs. Kartonsan Karton Sanayi | Konya Cimento vs. Nuh Cimento Sanayi | Konya Cimento vs. Afyon Cimento Sanayi |
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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