Correlation Between Koza Anadolu and Bera Holding
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Bera Holding 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 Koza Anadolu and Bera Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and Bera Holding AS, you can compare the effects of market volatilities on Koza Anadolu and Bera Holding 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 Koza Anadolu with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Bera Holding.
Diversification Opportunities for Koza Anadolu and Bera Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Bera is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Bera Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bera Holding AS and Koza Anadolu 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 Koza Anadolu Metal are associated (or correlated) with Bera Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bera Holding AS has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Bera Holding go up and down completely randomly.
Pair Corralation between Koza Anadolu and Bera Holding
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.98 times more return on investment than Bera Holding. However, Koza Anadolu Metal is 1.02 times less risky than Bera Holding. It trades about 0.03 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.02 per unit of risk. If you would invest 5,430 in Koza Anadolu Metal on September 24, 2024 and sell it today you would earn a total of 1,080 from holding Koza Anadolu Metal or generate 19.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Koza Anadolu Metal vs. Bera Holding AS
Performance |
Timeline |
Koza Anadolu Metal |
Bera Holding AS |
Koza Anadolu and Bera Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koza Anadolu and Bera Holding
The main advantage of trading using opposite Koza Anadolu and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Bera Holding 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 Bera Holding will offset losses from the drop in Bera Holding's long position.Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir | Koza Anadolu vs. Tekfen Holding AS |
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Check out your portfolio center.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.
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