Correlation Between Koza Anadolu and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Kardemir Karabuk 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 Kardemir Karabuk 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 Kardemir Karabuk Demir, you can compare the effects of market volatilities on Koza Anadolu and Kardemir Karabuk 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 Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Kardemir Karabuk.
Diversification Opportunities for Koza Anadolu and Kardemir Karabuk
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koza and Kardemir is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir 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 Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Koza Anadolu and Kardemir Karabuk
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to under-perform the Kardemir Karabuk. But the stock apears to be less risky and, when comparing its historical volatility, Koza Anadolu Metal is 1.11 times less risky than Kardemir Karabuk. The stock trades about -0.21 of its potential returns per unit of risk. The Kardemir Karabuk Demir is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,340 in Kardemir Karabuk Demir on September 24, 2024 and sell it today you would earn a total of 60.00 from holding Kardemir Karabuk Demir or generate 2.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Koza Anadolu Metal vs. Kardemir Karabuk Demir
Performance |
Timeline |
Koza Anadolu Metal |
Kardemir Karabuk Demir |
Koza Anadolu and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koza Anadolu and Kardemir Karabuk
The main advantage of trading using opposite Koza Anadolu and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Kardemir Karabuk 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 Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
Kardemir Karabuk vs. Eregli Demir ve | Kardemir Karabuk vs. Iskenderun Demir ve | Kardemir Karabuk vs. Borusan Yatirim ve | Kardemir Karabuk vs. Kardemir Karabuk Demir |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |