Correlation Between KOC METALURJI and Vakif Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both KOC METALURJI and Vakif 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 Vakif 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 Vakif Gayrimenkul Yatirim, you can compare the effects of market volatilities on KOC METALURJI and Vakif 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 Vakif Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Vakif Gayrimenkul.

Diversification Opportunities for KOC METALURJI and Vakif Gayrimenkul

0.5

Correlation Coefficient

KOC METALURJI  Vakif Gayrimenkul

Very weak diversification

The 3 months correlation between KOC and Vakif is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Vakif Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif 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 Vakif Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Gayrimenkul Yatirim has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Vakif Gayrimenkul go up and down completely randomly.

Pair Corralation between KOC METALURJI and Vakif Gayrimenkul

Assuming the 90 days trading horizon KOC METALURJI is expected to generate 1.05 times less return on investment than Vakif Gayrimenkul. In addition to that, KOC METALURJI is 1.02 times more volatile than Vakif Gayrimenkul Yatirim. It trades about 0.14 of its total potential returns per unit of risk. Vakif Gayrimenkul Yatirim is currently generating about 0.15 per unit of volatility. If you would invest  170.00  in Vakif Gayrimenkul Yatirim on October 8, 2024 and sell it today you would earn a total of  41.00  from holding Vakif Gayrimenkul Yatirim or generate 24.12% return on investment over 90 days.

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

KOC METALURJI  vs.  Vakif Gayrimenkul Yatirim

KOC METALURJI

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KOC METALURJI are ranked lower than 10 (%) 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.

Vakif Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Vakif Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KOC METALURJI and Vakif Gayrimenkul

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

The idea behind KOC METALURJI and Vakif 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.