Correlation Between Turk Traktor and Aksa Akrilik
Can any of the company-specific risk be diversified away by investing in both Turk Traktor and Aksa Akrilik 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 Turk Traktor and Aksa Akrilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Traktor ve and Aksa Akrilik Kimya, you can compare the effects of market volatilities on Turk Traktor and Aksa Akrilik 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 Turk Traktor with a short position of Aksa Akrilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Traktor and Aksa Akrilik.
Diversification Opportunities for Turk Traktor and Aksa Akrilik
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turk and Aksa is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Turk Traktor ve and Aksa Akrilik Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Akrilik Kimya and Turk Traktor 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 Turk Traktor ve are associated (or correlated) with Aksa Akrilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Akrilik Kimya has no effect on the direction of Turk Traktor i.e., Turk Traktor and Aksa Akrilik go up and down completely randomly.
Pair Corralation between Turk Traktor and Aksa Akrilik
Assuming the 90 days trading horizon Turk Traktor ve is expected to generate 0.8 times more return on investment than Aksa Akrilik. However, Turk Traktor ve is 1.25 times less risky than Aksa Akrilik. It trades about 0.19 of its potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about 0.12 per unit of risk. If you would invest 79,022 in Turk Traktor ve on March 4, 2024 and sell it today you would earn a total of 20,778 from holding Turk Traktor ve or generate 26.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Turk Traktor ve vs. Aksa Akrilik Kimya
Performance |
Timeline |
Turk Traktor ve |
Aksa Akrilik Kimya |
Turk Traktor and Aksa Akrilik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turk Traktor and Aksa Akrilik
The main advantage of trading using opposite Turk Traktor and Aksa Akrilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Traktor position performs unexpectedly, Aksa Akrilik 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 Aksa Akrilik will offset losses from the drop in Aksa Akrilik's long position.The idea behind Turk Traktor ve and Aksa Akrilik Kimya 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.Aksa Akrilik vs. BIM Birlesik Magazalar | Aksa Akrilik vs. Pegasus Hava Tasimaciligi | Aksa Akrilik vs. Turkiye Petrol Rafinerileri | Aksa Akrilik 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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