Correlation Between Aksa Akrilik and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Tofas Turk 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 Aksa Akrilik and Tofas Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksa Akrilik Kimya and Tofas Turk Otomobil, you can compare the effects of market volatilities on Aksa Akrilik and Tofas Turk 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 Aksa Akrilik with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Tofas Turk.
Diversification Opportunities for Aksa Akrilik and Tofas Turk
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aksa and Tofas is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and Aksa Akrilik 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 Aksa Akrilik Kimya are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Tofas Turk go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Tofas Turk
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 1.49 times more return on investment than Tofas Turk. However, Aksa Akrilik is 1.49 times more volatile than Tofas Turk Otomobil. It trades about 0.48 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about 0.37 per unit of risk. If you would invest 9,960 in Aksa Akrilik Kimya on February 20, 2024 and sell it today you would earn a total of 2,770 from holding Aksa Akrilik Kimya or generate 27.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aksa Akrilik Kimya vs. Tofas Turk Otomobil
Performance |
Timeline |
Aksa Akrilik Kimya |
Tofas Turk Otomobil |
Aksa Akrilik and Tofas Turk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aksa Akrilik and Tofas Turk
The main advantage of trading using opposite Aksa Akrilik and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.Aksa Akrilik vs. Eregli Demir ve | Aksa Akrilik vs. Turkiye Sise ve | Aksa Akrilik vs. Tofas Turk Otomobil | Aksa Akrilik vs. Ford Otomotiv Sanayi |
Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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