Correlation Between KOC METALURJI and GSD Denizcilik

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

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

Diversification Opportunities for KOC METALURJI and GSD Denizcilik

0.44

Correlation Coefficient

KOC METALURJI  GSD Denizcilik

Very weak diversification

The 3 months correlation between KOC and GSD is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and GSD Denizcilik Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Denizcilik Gayri 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 GSD Denizcilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Denizcilik Gayri has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and GSD Denizcilik go up and down completely randomly.

Pair Corralation between KOC METALURJI and GSD Denizcilik

Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the GSD Denizcilik. In addition to that, KOC METALURJI is 1.2 times more volatile than GSD Denizcilik Gayrimenkul. It trades about -0.12 of its total potential returns per unit of risk. GSD Denizcilik Gayrimenkul is currently generating about -0.08 per unit of volatility. If you would invest  922.00  in GSD Denizcilik Gayrimenkul on December 21, 2024 and sell it today you would lose (120.00) from holding GSD Denizcilik Gayrimenkul or give up 13.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

KOC METALURJI  vs.  GSD Denizcilik Gayrimenkul

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.

GSD Denizcilik Gayri

Risk-Adjusted Performance

Very Weak

Over the last 90 days GSD Denizcilik Gayrimenkul 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 METALURJI and GSD Denizcilik

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

The idea behind KOC METALURJI and GSD Denizcilik Gayrimenkul 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.