Correlation Between Pergamon Status and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Pergamon Status 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 Pergamon Status and Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pergamon Status Dis and Koc Holding AS, you can compare the effects of market volatilities on Pergamon Status 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 Pergamon Status with a short position of Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pergamon Status and Koc Holding.
Diversification Opportunities for Pergamon Status and Koc Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pergamon and Koc is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pergamon Status Dis 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 Pergamon Status 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 Pergamon Status Dis 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 Pergamon Status i.e., Pergamon Status and Koc Holding go up and down completely randomly.
Pair Corralation between Pergamon Status and Koc Holding
Assuming the 90 days trading horizon Pergamon Status Dis is expected to generate 2.57 times more return on investment than Koc Holding. However, Pergamon Status is 2.57 times more volatile than Koc Holding AS. It trades about 0.14 of its potential returns per unit of risk. Koc Holding AS is currently generating about -0.28 per unit of risk. If you would invest 7,855 in Pergamon Status Dis on September 25, 2024 and sell it today you would earn a total of 725.00 from holding Pergamon Status Dis or generate 9.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pergamon Status Dis vs. Koc Holding AS
Performance |
Timeline |
Pergamon Status Dis |
Koc Holding AS |
Pergamon Status and Koc Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pergamon Status and Koc Holding
The main advantage of trading using opposite Pergamon Status and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pergamon Status 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.Pergamon Status vs. Koc Holding AS | Pergamon Status vs. Alarko Holding AS | Pergamon Status vs. Kontrolmatik Teknoloji Enerji | Pergamon Status vs. Dogan Sirketler Grubu |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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