Correlation Between Akbank TAS and Haci Omer

Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Haci Omer 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 Akbank TAS and Haci Omer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akbank TAS and Haci Omer Sabanci, you can compare the effects of market volatilities on Akbank TAS and Haci Omer 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 Akbank TAS with a short position of Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Haci Omer.

Diversification Opportunities for Akbank TAS and Haci Omer

0.86

Correlation Coefficient

Akbank TAS  Haci Omer

Very poor diversification

The 3 months correlation between Akbank and Haci is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci and Akbank TAS 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 Akbank TAS are associated (or correlated) with Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Akbank TAS i.e., Akbank TAS and Haci Omer go up and down completely randomly.

Pair Corralation between Akbank TAS and Haci Omer

Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.33 times more return on investment than Haci Omer. However, Akbank TAS is 1.33 times more volatile than Haci Omer Sabanci. It trades about 0.14 of its potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.14 per unit of risk. If you would invest  701.00  in Akbank TAS on February 16, 2024 and sell it today you would earn a total of  5,019  from holding Akbank TAS or generate 715.98% return on investment over 90 days.

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

Akbank TAS  vs.  Haci Omer Sabanci

Akbank TAS

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Akbank TAS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward-looking signals, Akbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Haci Omer Sabanci

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain essential indicators, Haci Omer demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Akbank TAS and Haci Omer

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

The idea behind Akbank TAS and Haci Omer Sabanci 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.