Correlation Between Kristal Kola and Koza Anadolu

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

By analyzing existing cross correlation between Kristal Kola ve and Koza Anadolu Metal, you can compare the effects of market volatilities on Kristal Kola and Koza Anadolu 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 Kristal Kola with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kristal Kola and Koza Anadolu.

Diversification Opportunities for Kristal Kola and Koza Anadolu

-0.27

Correlation Coefficient

Kristal Kola  Koza Anadolu

Very good diversification

The 3 months correlation between Kristal and Koza is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kristal Kola ve and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and Kristal Kola 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 Kristal Kola ve are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Kristal Kola i.e., Kristal Kola and Koza Anadolu go up and down completely randomly.

Pair Corralation between Kristal Kola and Koza Anadolu

Assuming the 90 days trading horizon Kristal Kola ve is expected to under-perform the Koza Anadolu. In addition to that, Kristal Kola is 1.17 times more volatile than Koza Anadolu Metal. It trades about 0.0 of its total potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.03 per unit of volatility. If you would invest  5,600  in Koza Anadolu Metal on September 23, 2024 and sell it today you would earn a total of  910.00  from holding Koza Anadolu Metal or generate 16.25% return on investment over 90 days.

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

Kristal Kola ve  vs.  Koza Anadolu Metal

Kristal Kola ve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kristal Kola ve are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Kristal Kola is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Koza Anadolu Metal

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kristal Kola and Koza Anadolu

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

The idea behind Kristal Kola ve and Koza Anadolu Metal 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.