Correlation Between Tekfen Holding and Koza Altin

Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Koza Altin 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 Tekfen Holding and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tekfen Holding AS and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Tekfen Holding and Koza Altin 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 Tekfen Holding with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Koza Altin.

Diversification Opportunities for Tekfen Holding and Koza Altin

-0.04

Correlation Coefficient

Tekfen Holding  Koza Altin

Good diversification

The 3 months correlation between Tekfen and Koza is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Koza Altin go up and down completely randomly.

Pair Corralation between Tekfen Holding and Koza Altin

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Koza Altin. In addition to that, Tekfen Holding is 1.14 times more volatile than Koza Altin Isletmeleri. It trades about -0.02 of its total potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about 0.11 per unit of volatility. If you would invest  2,006  in Koza Altin Isletmeleri on October 20, 2024 and sell it today you would earn a total of  318.00  from holding Koza Altin Isletmeleri or generate 15.85% return on investment over 90 days.

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

Tekfen Holding AS  vs.  Koza Altin Isletmeleri

Tekfen Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tekfen Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Tekfen Holding is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Koza Altin Isletmeleri

Risk-Adjusted Performance

8 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Koza Altin Isletmeleri are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Koza Altin demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tekfen Holding and Koza Altin

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

The idea behind Tekfen Holding AS and Koza Altin Isletmeleri 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.