Correlation Between Alarko Holding and Dogan Sirketler

Can any of the company-specific risk be diversified away by investing in both Alarko Holding and Dogan Sirketler 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 Alarko Holding and Dogan Sirketler into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alarko Holding AS and Dogan Sirketler Grubu, you can compare the effects of market volatilities on Alarko Holding and Dogan Sirketler 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 Alarko Holding with a short position of Dogan Sirketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Holding and Dogan Sirketler.

Diversification Opportunities for Alarko Holding and Dogan Sirketler

0.73

Correlation Coefficient

Alarko Holding  Dogan Sirketler

Poor diversification

The 3 months correlation between Alarko and Dogan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Holding AS and Dogan Sirketler Grubu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogan Sirketler Grubu and Alarko 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 Alarko Holding AS are associated (or correlated) with Dogan Sirketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogan Sirketler Grubu has no effect on the direction of Alarko Holding i.e., Alarko Holding and Dogan Sirketler go up and down completely randomly.

Pair Corralation between Alarko Holding and Dogan Sirketler

Assuming the 90 days trading horizon Alarko Holding is expected to generate 1.06 times less return on investment than Dogan Sirketler. In addition to that, Alarko Holding is 1.13 times more volatile than Dogan Sirketler Grubu. It trades about 0.03 of its total potential returns per unit of risk. Dogan Sirketler Grubu is currently generating about 0.04 per unit of volatility. If you would invest  1,467  in Dogan Sirketler Grubu on December 28, 2024 and sell it today you would earn a total of  59.00  from holding Dogan Sirketler Grubu or generate 4.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Alarko Holding AS  vs.  Dogan Sirketler Grubu

Alarko Holding AS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alarko Holding AS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Alarko Holding is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Dogan Sirketler Grubu

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dogan Sirketler Grubu are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Dogan Sirketler is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Alarko Holding and Dogan Sirketler

The main advantage of trading using opposite Alarko Holding and Dogan Sirketler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Holding position performs unexpectedly, Dogan Sirketler 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 Dogan Sirketler will offset losses from the drop in Dogan Sirketler's long position.

The idea behind Alarko Holding AS and Dogan Sirketler Grubu pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..