Correlation Between Koc Holding and E Data

Can any of the company-specific risk be diversified away by investing in both Koc Holding and E Data 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 E Data 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 E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Koc Holding and E Data 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 E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and E Data.

Diversification Opportunities for Koc Holding and E Data

0.19

Correlation Coefficient

Koc Holding  E Data

Average diversification

The 3 months correlation between Koc and EDATA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji 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 E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Koc Holding i.e., Koc Holding and E Data go up and down completely randomly.

Pair Corralation between Koc Holding and E Data

Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.9 times more return on investment than E Data. However, Koc Holding AS is 1.11 times less risky than E Data. It trades about 0.01 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.14 per unit of risk. If you would invest  18,510  in Koc Holding AS on September 21, 2024 and sell it today you would lose (40.00) from holding Koc Holding AS or give up 0.22% of portfolio value over 90 days.

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

Koc Holding AS  vs.  E Data Teknoloji Pazarlama

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.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Koc Holding and E Data

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

The idea behind Koc Holding AS and E Data Teknoloji Pazarlama 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.