Correlation Between Koc Holding and Dogu Aras

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

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

Diversification Opportunities for Koc Holding and Dogu Aras

-0.5

Correlation Coefficient

Koc Holding  Dogu Aras

Very good diversification

The 3 months correlation between Koc and Dogu is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Dogu Aras Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogu Aras Enerji and Koc Holding 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 Koc Holding AS are associated (or correlated) with Dogu Aras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogu Aras Enerji has no effect on the direction of Koc Holding i.e., Koc Holding and Dogu Aras go up and down completely randomly.

Pair Corralation between Koc Holding and Dogu Aras

Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Dogu Aras. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.38 times less risky than Dogu Aras. The stock trades about -0.21 of its potential returns per unit of risk. The Dogu Aras Enerji is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,095  in Dogu Aras Enerji on September 23, 2024 and sell it today you would earn a total of  135.00  from holding Dogu Aras Enerji or generate 2.65% return on investment over 90 days.

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

Koc Holding AS  vs.  Dogu Aras Enerji

Koc Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Koc Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Dogu Aras Enerji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dogu Aras Enerji has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Koc Holding and Dogu Aras

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

The idea behind Koc Holding AS and Dogu Aras Enerji 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.