Correlation Between Bera Holding and Koc Holding

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

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

Diversification Opportunities for Bera Holding and Koc Holding

0.85

Correlation Coefficient

Bera Holding  Koc Holding

Very poor diversification

The 3 months correlation between Bera and Koc is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bera Holding AS and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS and Bera 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 Bera Holding AS are associated (or correlated) with Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Bera Holding i.e., Bera Holding and Koc Holding go up and down completely randomly.

Pair Corralation between Bera Holding and Koc Holding

Assuming the 90 days trading horizon Bera Holding AS is expected to under-perform the Koc Holding. In addition to that, Bera Holding is 1.21 times more volatile than Koc Holding AS. It trades about -0.02 of its total potential returns per unit of risk. Koc Holding AS is currently generating about 0.0 per unit of volatility. If you would invest  18,510  in Koc Holding AS on September 23, 2024 and sell it today you would lose (310.00) from holding Koc Holding AS or give up 1.67% of portfolio value over 90 days.

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

Bera Holding AS  vs.  Koc Holding AS

Bera Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bera Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Koc Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bera Holding and Koc Holding

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

The idea behind Bera Holding AS and Koc Holding AS 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.