Correlation Between KOC METALURJI and Akcansa Cimento

Can any of the company-specific risk be diversified away by investing in both KOC METALURJI and Akcansa Cimento 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 METALURJI and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KOC METALURJI and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on KOC METALURJI and Akcansa Cimento 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 METALURJI with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Akcansa Cimento.

Diversification Opportunities for KOC METALURJI and Akcansa Cimento

-0.31

Correlation Coefficient

KOC METALURJI  Akcansa Cimento

Very good diversification

The 3 months correlation between KOC and Akcansa is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and KOC METALURJI 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 METALURJI are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Akcansa Cimento go up and down completely randomly.

Pair Corralation between KOC METALURJI and Akcansa Cimento

Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Akcansa Cimento. In addition to that, KOC METALURJI is 1.21 times more volatile than Akcansa Cimento Sanayi. It trades about -0.15 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.02 per unit of volatility. If you would invest  17,640  in Akcansa Cimento Sanayi on December 23, 2024 and sell it today you would earn a total of  190.00  from holding Akcansa Cimento Sanayi or generate 1.08% return on investment over 90 days.

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

KOC METALURJI  vs.  Akcansa Cimento Sanayi

KOC METALURJI

Risk-Adjusted Performance

Very Weak

Over the last 90 days KOC METALURJI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Akcansa Cimento 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 METALURJI and Akcansa Cimento

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

The idea behind KOC METALURJI and Akcansa Cimento Sanayi 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.