Correlation Between Hedef Girisim and KOC METALURJI

Can any of the company-specific risk be diversified away by investing in both Hedef Girisim 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 Hedef Girisim and KOC METALURJI 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 METALURJI, you can compare the effects of market volatilities on Hedef Girisim 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 Hedef Girisim with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedef Girisim and KOC METALURJI.

Diversification Opportunities for Hedef Girisim and KOC METALURJI

-0.15

Correlation Coefficient

Hedef Girisim  KOC METALURJI

Good diversification

The 3 months correlation between Hedef and KOC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI 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 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 Hedef Girisim i.e., Hedef Girisim and KOC METALURJI go up and down completely randomly.

Pair Corralation between Hedef Girisim and KOC METALURJI

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 1.6 times more return on investment than KOC METALURJI. However, Hedef Girisim is 1.6 times more volatile than KOC METALURJI. It trades about 0.05 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.12 per unit of risk. If you would invest  154.00  in Hedef Girisim Sermayesi on December 21, 2024 and sell it today you would earn a total of  15.00  from holding Hedef Girisim Sermayesi or generate 9.74% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  KOC METALURJI

Hedef Girisim Sermayesi

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 4 (%) 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 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 Hedef Girisim and KOC METALURJI

The main advantage of trading using opposite Hedef Girisim and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Girisim 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 Hedef Girisim Sermayesi 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .