Correlation Between KOC METALURJI and Peker Gayrimenkul

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

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

Diversification Opportunities for KOC METALURJI and Peker Gayrimenkul

0.24

Correlation Coefficient

KOC METALURJI  Peker Gayrimenkul

Modest diversification

The 3 months correlation between KOC and Peker is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between KOC METALURJI and Peker Gayrimenkul

Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Peker Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, KOC METALURJI is 1.32 times less risky than Peker Gayrimenkul. The stock trades about -0.15 of its potential returns per unit of risk. The Peker Gayrimenkul Yatirim is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  158.00  in Peker Gayrimenkul Yatirim on December 22, 2024 and sell it today you would lose (21.00) from holding Peker Gayrimenkul Yatirim or give up 13.29% of portfolio value over 90 days.

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

KOC METALURJI  vs.  Peker Gayrimenkul Yatirim

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.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peker Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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 Peker Gayrimenkul

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

The idea behind KOC METALURJI and Peker Gayrimenkul Yatirim 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 Stocks Directory module to find actively traded stocks across global markets.