Correlation Between Koc Holding and RONESANS GAYRIMENKUL

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

Diversification Opportunities for Koc Holding and RONESANS GAYRIMENKUL

0.7

Correlation Coefficient

Koc Holding  RONESANS GAYRIMENKUL

Poor diversification

The 3 months correlation between Koc and RONESANS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and RONESANS GAYRIMENKUL YAT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RONESANS GAYRIMENKUL YAT 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 RONESANS GAYRIMENKUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RONESANS GAYRIMENKUL YAT has no effect on the direction of Koc Holding i.e., Koc Holding and RONESANS GAYRIMENKUL go up and down completely randomly.

Pair Corralation between Koc Holding and RONESANS GAYRIMENKUL

Assuming the 90 days trading horizon Koc Holding AS is expected to generate 1.13 times more return on investment than RONESANS GAYRIMENKUL. However, Koc Holding is 1.13 times more volatile than RONESANS GAYRIMENKUL YAT. It trades about 0.08 of its potential returns per unit of risk. RONESANS GAYRIMENKUL YAT is currently generating about -0.03 per unit of risk. If you would invest  7,811  in Koc Holding AS on October 12, 2024 and sell it today you would earn a total of  10,839  from holding Koc Holding AS or generate 138.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	35.76%
Values	Daily Returns

Koc Holding AS  vs.  RONESANS GAYRIMENKUL YAT

Koc Holding AS

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Koc Holding AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Koc Holding may actually be approaching a critical reversion point that can send shares even higher in February 2025.

RONESANS GAYRIMENKUL YAT

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RONESANS GAYRIMENKUL YAT are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, RONESANS GAYRIMENKUL demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koc Holding and RONESANS GAYRIMENKUL

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

The idea behind Koc Holding AS and RONESANS GAYRIMENKUL YAT 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..