Correlation Between Hedef Girisim and Koc Holding

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

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

Diversification Opportunities for Hedef Girisim and Koc Holding

0.53

Correlation Coefficient

Hedef Girisim  Koc Holding

Very weak diversification

The 3 months correlation between Hedef and Koc is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi 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 Hedef Girisim 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 Hedef Girisim Sermayesi 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 Hedef Girisim i.e., Hedef Girisim and Koc Holding go up and down completely randomly.

Pair Corralation between Hedef Girisim and Koc Holding

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 1.49 times more return on investment than Koc Holding. However, Hedef Girisim is 1.49 times more volatile than Koc Holding AS. It trades about 0.18 of its potential returns per unit of risk. Koc Holding AS is currently generating about 0.05 per unit of risk. If you would invest  136.00  in Hedef Girisim Sermayesi on October 21, 2024 and sell it today you would earn a total of  43.00  from holding Hedef Girisim Sermayesi or generate 31.62% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  Koc Holding AS

Hedef Girisim Sermayesi

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hedef Girisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Koc Holding AS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Koc Holding AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Koc Holding is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Hedef Girisim and Koc Holding

The main advantage of trading using opposite Hedef Girisim and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Girisim 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.

The idea behind Hedef Girisim Sermayesi and Koc Holding AS 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.