Correlation Between Global Yatirim and KOC METALURJI

Can any of the company-specific risk be diversified away by investing in both Global Yatirim and KOC METALURJI 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 Global Yatirim and KOC METALURJI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Yatirim Holding and KOC METALURJI, you can compare the effects of market volatilities on Global Yatirim and KOC METALURJI 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 Global Yatirim with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Yatirim and KOC METALURJI.

Diversification Opportunities for Global Yatirim and KOC METALURJI

-0.45

Correlation Coefficient

Global Yatirim  KOC METALURJI

Very good diversification

The 3 months correlation between Global and KOC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global Yatirim Holding and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Global Yatirim 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 Global Yatirim Holding are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Global Yatirim i.e., Global Yatirim and KOC METALURJI go up and down completely randomly.

Pair Corralation between Global Yatirim and KOC METALURJI

Assuming the 90 days trading horizon Global Yatirim Holding is expected to generate 1.04 times more return on investment than KOC METALURJI. However, Global Yatirim is 1.04 times more volatile than KOC METALURJI. It trades about 0.19 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.12 per unit of risk. If you would invest  560.00  in Global Yatirim Holding on December 21, 2024 and sell it today you would earn a total of  224.00  from holding Global Yatirim Holding or generate 40.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Global Yatirim Holding  vs.  KOC METALURJI

Global Yatirim Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Yatirim Holding are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Global Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

KOC METALURJI

Risk-Adjusted Performance

Very Weak

Over the last 90 days KOC METALURJI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Global Yatirim and KOC METALURJI

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

The idea behind Global Yatirim Holding and KOC METALURJI 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 CEOs Directory module to screen CEOs from public companies around the world.