Correlation Between Bera Holding and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Bera Holding and Koc 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 Bera Holding and Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bera Holding AS and Koc Holding AS, you can compare the effects of market volatilities on Bera Holding and Koc 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 Bera Holding with a short position of Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bera Holding and Koc Holding.
Diversification Opportunities for Bera Holding and Koc Holding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bera and Koc is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bera Holding AS and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS and Bera 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 Bera Holding AS are associated (or correlated) with Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Bera Holding i.e., Bera Holding and Koc Holding go up and down completely randomly.
Pair Corralation between Bera Holding and Koc Holding
Assuming the 90 days trading horizon Bera Holding is expected to generate 3.55 times less return on investment than Koc Holding. In addition to that, Bera Holding is 1.35 times more volatile than Koc Holding AS. It trades about 0.02 of its total potential returns per unit of risk. Koc Holding AS is currently generating about 0.08 per unit of volatility. If you would invest 7,952 in Koc Holding AS on September 23, 2024 and sell it today you would earn a total of 10,248 from holding Koc Holding AS or generate 128.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bera Holding AS vs. Koc Holding AS
Performance |
Timeline |
Bera Holding AS |
Koc Holding AS |
Bera Holding and Koc Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bera Holding and Koc Holding
The main advantage of trading using opposite Bera Holding and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bera Holding position performs unexpectedly, Koc 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 Koc Holding will offset losses from the drop in Koc Holding's long position.Bera Holding vs. Koc Holding AS | Bera Holding vs. Alarko Holding AS | Bera Holding vs. Kontrolmatik Teknoloji Enerji | Bera Holding vs. Dogan Sirketler Grubu |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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