Correlation Between KOC METALURJI and Seyitler Kimya

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

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

Diversification Opportunities for KOC METALURJI and Seyitler Kimya

-0.61

Correlation Coefficient

KOC METALURJI  Seyitler Kimya

Excellent diversification

The 3 months correlation between KOC and Seyitler is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Seyitler Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seyitler Kimya 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 Seyitler Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seyitler Kimya Sanayi has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Seyitler Kimya go up and down completely randomly.

Pair Corralation between KOC METALURJI and Seyitler Kimya

Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Seyitler Kimya. But the stock apears to be less risky and, when comparing its historical volatility, KOC METALURJI is 1.24 times less risky than Seyitler Kimya. The stock trades about -0.05 of its potential returns per unit of risk. The Seyitler Kimya Sanayi is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  381.00  in Seyitler Kimya Sanayi on October 9, 2024 and sell it today you would lose (42.00) from holding Seyitler Kimya Sanayi or give up 11.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	88.46%
Values	Daily Returns

KOC METALURJI  vs.  Seyitler Kimya Sanayi

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.

Seyitler Kimya Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seyitler Kimya Sanayi 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with KOC METALURJI and Seyitler Kimya

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

The idea behind KOC METALURJI and Seyitler Kimya 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.