Correlation Between Kristal Kola and Dogu Aras

Can any of the company-specific risk be diversified away by investing in both Kristal Kola and Dogu Aras 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 Kristal Kola and Dogu Aras into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kristal Kola ve and Dogu Aras Enerji, you can compare the effects of market volatilities on Kristal Kola and Dogu Aras 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 Kristal Kola with a short position of Dogu Aras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kristal Kola and Dogu Aras.

Diversification Opportunities for Kristal Kola and Dogu Aras

0.24

Correlation Coefficient

Kristal Kola  Dogu Aras

Modest diversification

The 3 months correlation between Kristal and Dogu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kristal Kola ve and Dogu Aras Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogu Aras Enerji and Kristal Kola 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 Kristal Kola ve are associated (or correlated) with Dogu Aras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogu Aras Enerji has no effect on the direction of Kristal Kola i.e., Kristal Kola and Dogu Aras go up and down completely randomly.

Pair Corralation between Kristal Kola and Dogu Aras

Assuming the 90 days trading horizon Kristal Kola ve is expected to generate 1.37 times more return on investment than Dogu Aras. However, Kristal Kola is 1.37 times more volatile than Dogu Aras Enerji. It trades about 0.04 of its potential returns per unit of risk. Dogu Aras Enerji is currently generating about -0.21 per unit of risk. If you would invest  582.00  in Kristal Kola ve on December 28, 2024 and sell it today you would earn a total of  28.00  from holding Kristal Kola ve or generate 4.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Kristal Kola ve  vs.  Dogu Aras Enerji

Kristal Kola ve

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kristal Kola ve are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kristal Kola may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Dogu Aras Enerji

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogu Aras Enerji 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Kristal Kola and Dogu Aras

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

The idea behind Kristal Kola ve and Dogu Aras Enerji 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.