Correlation Between Alarko Holding and Ihlas Holding
Can any of the company-specific risk be diversified away by investing in both Alarko Holding and Ihlas Holding 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 Ihlas Holding 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 Ihlas Holding AS, you can compare the effects of market volatilities on Alarko Holding and Ihlas Holding 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 Ihlas Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Holding and Ihlas Holding.
Diversification Opportunities for Alarko Holding and Ihlas Holding
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alarko and Ihlas is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Holding AS and Ihlas Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Holding AS 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 Ihlas Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Holding AS has no effect on the direction of Alarko Holding i.e., Alarko Holding and Ihlas Holding go up and down completely randomly.
Pair Corralation between Alarko Holding and Ihlas Holding
Assuming the 90 days trading horizon Alarko Holding is expected to generate 3.82 times less return on investment than Ihlas Holding. But when comparing it to its historical volatility, Alarko Holding AS is 1.27 times less risky than Ihlas Holding. It trades about 0.03 of its potential returns per unit of risk. Ihlas Holding AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Ihlas Holding AS on September 23, 2024 and sell it today you would earn a total of 231.00 from holding Ihlas Holding AS or generate 208.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Alarko Holding AS vs. Ihlas Holding AS
Performance |
Timeline |
Alarko Holding AS |
Ihlas Holding AS |
Alarko Holding and Ihlas Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alarko Holding and Ihlas Holding
The main advantage of trading using opposite Alarko Holding and Ihlas Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Holding position performs unexpectedly, Ihlas Holding 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 Ihlas Holding will offset losses from the drop in Ihlas Holding's long position.Alarko Holding vs. Eregli Demir ve | Alarko Holding vs. Turkiye Petrol Rafinerileri | Alarko Holding vs. Turkish Airlines | Alarko Holding vs. Ford Otomotiv Sanayi |
Ihlas Holding vs. Eregli Demir ve | Ihlas Holding vs. Turkiye Petrol Rafinerileri | Ihlas Holding vs. Turkish Airlines | Ihlas Holding vs. Ford Otomotiv 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |