Correlation Between Arcelik AS and Katmerciler Arac
Can any of the company-specific risk be diversified away by investing in both Arcelik AS and Katmerciler Arac 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 Arcelik AS and Katmerciler Arac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcelik AS and Katmerciler Arac Ustu, you can compare the effects of market volatilities on Arcelik AS and Katmerciler Arac 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 Arcelik AS with a short position of Katmerciler Arac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcelik AS and Katmerciler Arac.
Diversification Opportunities for Arcelik AS and Katmerciler Arac
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arcelik and Katmerciler is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Arcelik AS and Katmerciler Arac Ustu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katmerciler Arac Ustu and Arcelik AS 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 Arcelik AS are associated (or correlated) with Katmerciler Arac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katmerciler Arac Ustu has no effect on the direction of Arcelik AS i.e., Arcelik AS and Katmerciler Arac go up and down completely randomly.
Pair Corralation between Arcelik AS and Katmerciler Arac
Assuming the 90 days trading horizon Arcelik AS is expected to generate 0.76 times more return on investment than Katmerciler Arac. However, Arcelik AS is 1.32 times less risky than Katmerciler Arac. It trades about 0.34 of its potential returns per unit of risk. Katmerciler Arac Ustu is currently generating about 0.15 per unit of risk. If you would invest 16,190 in Arcelik AS on February 15, 2024 and sell it today you would earn a total of 2,370 from holding Arcelik AS or generate 14.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Arcelik AS vs. Katmerciler Arac Ustu
Performance |
Timeline |
Arcelik AS |
Katmerciler Arac Ustu |
Arcelik AS and Katmerciler Arac Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arcelik AS and Katmerciler Arac
The main advantage of trading using opposite Arcelik AS and Katmerciler Arac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcelik AS position performs unexpectedly, Katmerciler Arac 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 Katmerciler Arac will offset losses from the drop in Katmerciler Arac's long position.Arcelik AS vs. Turkiye Sise ve | Arcelik AS vs. Turkiye Petrol Rafinerileri | Arcelik AS vs. Tofas Turk Otomobil | Arcelik AS vs. Eregli Demir ve |
Katmerciler Arac vs. Eregli Demir ve | Katmerciler Arac vs. Turkiye Petrol Rafinerileri | Katmerciler Arac vs. Ford Otomotiv Sanayi |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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