Correlation Between Koc Holding and Datagate Bilgisayar

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

Diversification Opportunities for Koc Holding and Datagate Bilgisayar

0.34

Correlation Coefficient

Koc Holding  Datagate Bilgisayar

Weak diversification

The 3 months correlation between Koc and Datagate is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar 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 Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Koc Holding i.e., Koc Holding and Datagate Bilgisayar go up and down completely randomly.

Pair Corralation between Koc Holding and Datagate Bilgisayar

Assuming the 90 days trading horizon Koc Holding is expected to generate 3.09 times less return on investment than Datagate Bilgisayar. But when comparing it to its historical volatility, Koc Holding AS is 1.72 times less risky than Datagate Bilgisayar. It trades about 0.1 of its potential returns per unit of risk. Datagate Bilgisayar Malzemeleri is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  4,930  in Datagate Bilgisayar Malzemeleri on April 22, 2025 and sell it today you would earn a total of  2,585  from holding Datagate Bilgisayar Malzemeleri or generate 52.43% return on investment over 90 days.

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

Koc Holding AS  vs.  Datagate Bilgisayar Malzemeler

Koc Holding AS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Koc Holding AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Koc Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Datagate Bilgisayar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Datagate Bilgisayar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koc Holding and Datagate Bilgisayar

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

The idea behind Koc Holding AS and Datagate Bilgisayar Malzemeleri 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.