Correlation Between Koc Holding and Turkiye Is

Can any of the company-specific risk be diversified away by investing in both Koc Holding and Turkiye Is 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 Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Koc Holding and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Turkiye Is.

Diversification Opportunities for Koc Holding and Turkiye Is

0.11

Correlation Coefficient

Koc Holding  Turkiye Is

Average diversification

The 3 months correlation between Koc and Turkiye is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Koc Holding i.e., Koc Holding and Turkiye Is go up and down completely randomly.

Pair Corralation between Koc Holding and Turkiye Is

Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Turkiye Is. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.06 times less risky than Turkiye Is. The stock trades about -0.04 of its potential returns per unit of risk. The Turkiye Is Bankasi is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,326  in Turkiye Is Bankasi on December 30, 2024 and sell it today you would lose (100.00) from holding Turkiye Is Bankasi or give up 7.54% of portfolio value over 90 days.

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

Koc Holding AS  vs.  Turkiye Is Bankasi

Koc Holding AS

Risk-Adjusted Performance

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 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.

Turkiye Is Bankasi

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Koc Holding and Turkiye Is

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

The idea behind Koc Holding AS and Turkiye Is Bankasi 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.