Correlation Between Tumosan and Akis Gayrimenkul

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

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

Diversification Opportunities for Tumosan and Akis Gayrimenkul

0.57

Correlation Coefficient

Tumosan  Akis Gayrimenkul

Very weak diversification

The 3 months correlation between Tumosan and Akis is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tumosan Motor 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 Tumosan 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 Tumosan Motor 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 Tumosan i.e., Tumosan and Akis Gayrimenkul go up and down completely randomly.

Pair Corralation between Tumosan and Akis Gayrimenkul

Assuming the 90 days trading horizon Tumosan Motor ve is expected to generate 1.67 times more return on investment than Akis Gayrimenkul. However, Tumosan is 1.67 times more volatile than Akis Gayrimenkul Yatirim. It trades about 0.15 of its potential returns per unit of risk. Akis Gayrimenkul Yatirim is currently generating about 0.2 per unit of risk. If you would invest  15,250  in Tumosan Motor ve on January 31, 2024 and sell it today you would earn a total of  2,030  from holding Tumosan Motor ve or generate 13.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.44%
Values	Daily Returns

Tumosan Motor ve  vs.  Akis Gayrimenkul Yatirim

Tumosan Motor ve

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tumosan Motor ve are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Tumosan unveiled solid returns over the last few months and may actually be approaching a breakup point.

Akis Gayrimenkul Yatirim

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akis Gayrimenkul Yatirim are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Akis Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tumosan and Akis Gayrimenkul

The main advantage of trading using opposite Tumosan and Akis Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tumosan 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 Tumosan Motor 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.