Correlation Between Kocaer Celik and Deva Holding
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik 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 Kocaer Celik and Deva Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kocaer Celik Sanayi and Deva Holding AS, you can compare the effects of market volatilities on Kocaer Celik 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 Kocaer Celik with a short position of Deva Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Deva Holding.
Diversification Opportunities for Kocaer Celik and Deva Holding
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kocaer and Deva is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik 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 Kocaer Celik 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 Kocaer Celik 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 Kocaer Celik i.e., Kocaer Celik and Deva Holding go up and down completely randomly.
Pair Corralation between Kocaer Celik and Deva Holding
Assuming the 90 days trading horizon Kocaer Celik is expected to generate 1.44 times less return on investment than Deva Holding. But when comparing it to its historical volatility, Kocaer Celik Sanayi is 1.06 times less risky than Deva Holding. It trades about 0.09 of its potential returns per unit of risk. 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 Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kocaer Celik Sanayi vs. Deva Holding AS
Performance |
Timeline |
Kocaer Celik Sanayi |
Deva Holding AS |
Kocaer Celik and Deva Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kocaer Celik and Deva Holding
The main advantage of trading using opposite Kocaer Celik and Deva Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik 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.Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |