Correlation Between Dogus Gayrimenkul and Kocaer Celik

Can any of the company-specific risk be diversified away by investing in both Dogus Gayrimenkul and Kocaer Celik 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 Dogus Gayrimenkul and Kocaer Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dogus Gayrimenkul Yatirim and Kocaer Celik Sanayi, you can compare the effects of market volatilities on Dogus Gayrimenkul and Kocaer Celik 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 Dogus Gayrimenkul with a short position of Kocaer Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Gayrimenkul and Kocaer Celik.

Diversification Opportunities for Dogus Gayrimenkul and Kocaer Celik

0.81

Correlation Coefficient

Dogus Gayrimenkul  Kocaer Celik

Very poor diversification

The 3 months correlation between Dogus and Kocaer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Gayrimenkul Yatirim and Kocaer Celik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kocaer Celik Sanayi and Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim are associated (or correlated) with Kocaer Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kocaer Celik Sanayi has no effect on the direction of Dogus Gayrimenkul i.e., Dogus Gayrimenkul and Kocaer Celik go up and down completely randomly.

Pair Corralation between Dogus Gayrimenkul and Kocaer Celik

Assuming the 90 days trading horizon Dogus Gayrimenkul Yatirim is expected to under-perform the Kocaer Celik. In addition to that, Dogus Gayrimenkul is 1.32 times more volatile than Kocaer Celik Sanayi. It trades about -0.02 of its total potential returns per unit of risk. Kocaer Celik Sanayi is currently generating about 0.14 per unit of volatility. If you would invest  1,341  in Kocaer Celik Sanayi on September 22, 2024 and sell it today you would earn a total of  79.00  from holding Kocaer Celik Sanayi or generate 5.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Dogus Gayrimenkul Yatirim  vs.  Kocaer Celik Sanayi

Dogus Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dogus Gayrimenkul Yatirim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Dogus Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Kocaer Celik Sanayi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kocaer Celik Sanayi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kocaer Celik may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Dogus Gayrimenkul and Kocaer Celik

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

The idea behind Dogus Gayrimenkul Yatirim and Kocaer Celik Sanayi 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..