Correlation Between Koc Holding and Global Menkul

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

Diversification Opportunities for Koc Holding and Global Menkul

0.66

Correlation Coefficient

Koc Holding  Global Menkul

Poor diversification

The 3 months correlation between Koc and Global is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Global Menkul Degerler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Menkul Degerler 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 Global Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Menkul Degerler has no effect on the direction of Koc Holding i.e., Koc Holding and Global Menkul go up and down completely randomly.

Pair Corralation between Koc Holding and Global Menkul

Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Global Menkul. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.97 times less risky than Global Menkul. The stock trades about 0.0 of its potential returns per unit of risk. The Global Menkul Degerler is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,038  in Global Menkul Degerler on September 22, 2024 and sell it today you would earn a total of  238.00  from holding Global Menkul Degerler or generate 22.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Koc Holding AS  vs.  Global Menkul Degerler

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.

Global Menkul Degerler

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Menkul Degerler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Global Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koc Holding and Global Menkul

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

The idea behind Koc Holding AS and Global Menkul Degerler 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 Global Correlations module to find global opportunities by holding instruments from different markets.