Correlation Between KOC METALURJI and Aksu Enerji

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

By analyzing existing cross correlation between KOC METALURJI and Aksu Enerji ve, you can compare the effects of market volatilities on KOC METALURJI and Aksu Enerji 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 Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Aksu Enerji.

Diversification Opportunities for KOC METALURJI and Aksu Enerji

0.37

Correlation Coefficient

KOC METALURJI  Aksu Enerji

Weak diversification

The 3 months correlation between KOC and Aksu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve 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 Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Aksu Enerji go up and down completely randomly.

Pair Corralation between KOC METALURJI and Aksu Enerji

Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Aksu Enerji. In addition to that, KOC METALURJI is 1.12 times more volatile than Aksu Enerji ve. It trades about -0.05 of its total potential returns per unit of risk. Aksu Enerji ve is currently generating about 0.02 per unit of volatility. If you would invest  1,119  in Aksu Enerji ve on October 9, 2024 and sell it today you would earn a total of  60.00  from holding Aksu Enerji ve or generate 5.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	65.71%
Values	Daily Returns

KOC METALURJI  vs.  Aksu Enerji ve

KOC METALURJI

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KOC METALURJI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, KOC METALURJI demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Aksu Enerji ve

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aksu Enerji ve are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Aksu Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KOC METALURJI and Aksu Enerji

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

The idea behind KOC METALURJI and Aksu Enerji ve 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.