Correlation Between Ipek Dogal and Koza Altin

Can any of the company-specific risk be diversified away by investing in both Ipek Dogal and Koza Altin 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 Ipek Dogal and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ipek Dogal Enerji and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Ipek Dogal and Koza Altin 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 Ipek Dogal with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipek Dogal and Koza Altin.

Diversification Opportunities for Ipek Dogal and Koza Altin

0.65

Correlation Coefficient

Ipek Dogal  Koza Altin

Poor diversification

The 3 months correlation between Ipek and Koza is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ipek Dogal Enerji and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri and Ipek Dogal 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 Ipek Dogal Enerji are associated (or correlated) with Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Ipek Dogal i.e., Ipek Dogal and Koza Altin go up and down completely randomly.

Pair Corralation between Ipek Dogal and Koza Altin

Assuming the 90 days trading horizon Ipek Dogal is expected to generate 2.57 times less return on investment than Koza Altin. In addition to that, Ipek Dogal is 1.05 times more volatile than Koza Altin Isletmeleri. It trades about 0.04 of its total potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about 0.11 per unit of volatility. If you would invest  2,196  in Koza Altin Isletmeleri on December 4, 2024 and sell it today you would earn a total of  120.00  from holding Koza Altin Isletmeleri or generate 5.46% return on investment over 90 days.

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

Ipek Dogal Enerji  vs.  Koza Altin Isletmeleri

Ipek Dogal Enerji

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ipek Dogal Enerji are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ipek Dogal may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Koza Altin Isletmeleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koza Altin Isletmeleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Koza Altin is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Ipek Dogal and Koza Altin

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

The idea behind Ipek Dogal Enerji and Koza Altin Isletmeleri 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.