Correlation Between Karsan Otomotiv and Deva Holding
Can any of the company-specific risk be diversified away by investing in both Karsan Otomotiv and Deva 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 Karsan Otomotiv and Deva Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karsan Otomotiv Sanayi and Deva Holding AS, you can compare the effects of market volatilities on Karsan Otomotiv and Deva 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 Karsan Otomotiv with a short position of Deva Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karsan Otomotiv and Deva Holding.
Diversification Opportunities for Karsan Otomotiv and Deva Holding
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Karsan and Deva is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Karsan Otomotiv Sanayi and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS and Karsan Otomotiv 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 Karsan Otomotiv Sanayi are associated (or correlated) with Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of Karsan Otomotiv i.e., Karsan Otomotiv and Deva Holding go up and down completely randomly.
Pair Corralation between Karsan Otomotiv and Deva Holding
Assuming the 90 days trading horizon Karsan Otomotiv Sanayi is expected to under-perform the Deva Holding. But the stock apears to be less risky and, when comparing its historical volatility, Karsan Otomotiv Sanayi is 1.68 times less risky than Deva Holding. The stock trades about -0.21 of its potential returns per unit of risk. The Deva Holding AS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,060 in Deva Holding AS on September 25, 2024 and sell it today you would earn a total of 360.00 from holding Deva Holding AS or generate 5.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Karsan Otomotiv Sanayi vs. Deva Holding AS
Performance |
Timeline |
Karsan Otomotiv Sanayi |
Deva Holding AS |
Karsan Otomotiv and Deva Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Karsan Otomotiv and Deva Holding
The main advantage of trading using opposite Karsan Otomotiv and Deva Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karsan Otomotiv position performs unexpectedly, Deva 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 Deva Holding will offset losses from the drop in Deva Holding's long position.Karsan Otomotiv vs. Tofas Turk Otomobil | Karsan Otomotiv vs. Hektas Ticaret TAS | Karsan Otomotiv vs. Eregli Demir ve |
Deva Holding vs. Alkim Alkali Kimya | Deva Holding vs. EIS Eczacibasi Ilac | Deva Holding vs. Arcelik AS | Deva Holding vs. BIM Birlesik Magazalar |
Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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