Correlation Between Koc Holding and Celebi Hava

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

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

Diversification Opportunities for Koc Holding and Celebi Hava

0.73

Correlation Coefficient

Koc Holding  Celebi Hava

Poor diversification

The 3 months correlation between Koc and Celebi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi and Koc 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 Koc Holding AS are associated (or correlated) with Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of Koc Holding i.e., Koc Holding and Celebi Hava go up and down completely randomly.

Pair Corralation between Koc Holding and Celebi Hava

Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.9 times more return on investment than Celebi Hava. However, Koc Holding AS is 1.12 times less risky than Celebi Hava. It trades about 0.0 of its potential returns per unit of risk. Celebi Hava Servisi is currently generating about -0.02 per unit of risk. 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	Significant
Accuracy	100.0%
Values	Daily Returns

Koc Holding AS  vs.  Celebi Hava Servisi

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.

Celebi Hava Servisi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Koc Holding and Celebi Hava

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

The idea behind Koc Holding AS and Celebi Hava Servisi 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .