Correlation Between Koza Altin and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Koza Altin 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 Altin 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 Altin Isletmeleri and Kardemir Karabuk Demir, you can compare the effects of market volatilities on Koza Altin 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 Altin with a short position of Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Altin and Kardemir Karabuk.
Diversification Opportunities for Koza Altin and Kardemir Karabuk
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Koza and Kardemir is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Koza Altin Isletmeleri 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 Altin 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 Altin Isletmeleri 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 Altin i.e., Koza Altin and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Koza Altin and Kardemir Karabuk
Assuming the 90 days trading horizon Koza Altin Isletmeleri is expected to under-perform the Kardemir Karabuk. In addition to that, Koza Altin is 1.19 times more volatile than Kardemir Karabuk Demir. It trades about -0.02 of its total potential returns per unit of risk. Kardemir Karabuk Demir is currently generating about 0.16 per unit of volatility. If you would invest 2,368 in Kardemir Karabuk Demir on September 14, 2024 and sell it today you would earn a total of 562.00 from holding Kardemir Karabuk Demir or generate 23.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Koza Altin Isletmeleri vs. Kardemir Karabuk Demir
Performance |
Timeline |
Koza Altin Isletmeleri |
Kardemir Karabuk Demir |
Koza Altin and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koza Altin and Kardemir Karabuk
The main advantage of trading using opposite Koza Altin and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Altin 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 Altin vs. Koza Anadolu Metal | Koza Altin vs. Turkiye Sise ve | Koza Altin vs. Turkiye Petrol Rafinerileri | Koza Altin vs. Eregli Demir ve |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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