Correlation Between Eregli Demir and Akis Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Akis Gayrimenkul 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 Eregli Demir and Akis Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eregli Demir ve and Akis Gayrimenkul Yatirim, you can compare the effects of market volatilities on Eregli Demir and Akis Gayrimenkul 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 Eregli Demir with a short position of Akis Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Akis Gayrimenkul.

Diversification Opportunities for Eregli Demir and Akis Gayrimenkul

0.56

Correlation Coefficient

Eregli Demir  Akis Gayrimenkul

Very weak diversification

The 3 months correlation between Eregli and Akis is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Akis Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akis Gayrimenkul Yatirim and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Akis Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akis Gayrimenkul Yatirim has no effect on the direction of Eregli Demir i.e., Eregli Demir and Akis Gayrimenkul go up and down completely randomly.

Pair Corralation between Eregli Demir and Akis Gayrimenkul

Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.49 times more return on investment than Akis Gayrimenkul. However, Eregli Demir ve is 2.04 times less risky than Akis Gayrimenkul. It trades about 0.39 of its potential returns per unit of risk. Akis Gayrimenkul Yatirim is currently generating about 0.13 per unit of risk. If you would invest  4,158  in Eregli Demir ve on February 21, 2024 and sell it today you would earn a total of  638.00  from holding Eregli Demir ve or generate 15.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Eregli Demir ve  vs.  Akis Gayrimenkul Yatirim

Eregli Demir ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eregli Demir ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Eregli Demir is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Akis Gayrimenkul Yatirim

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Akis Gayrimenkul Yatirim are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Akis Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Eregli Demir and Akis Gayrimenkul

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

The idea behind Eregli Demir ve and Akis Gayrimenkul Yatirim 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.