Correlation Between Aksa Akrilik and Turkiye Halk
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Turkiye Halk 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 Turkiye Halk 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 Turkiye Halk Bankasi, you can compare the effects of market volatilities on Aksa Akrilik and Turkiye Halk 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 Turkiye Halk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Turkiye Halk.
Diversification Opportunities for Aksa Akrilik and Turkiye Halk
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aksa and Turkiye is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Turkiye Halk Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Halk Bankasi 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 Turkiye Halk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Halk Bankasi has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Turkiye Halk go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Turkiye Halk
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 15.2 times more return on investment than Turkiye Halk. However, Aksa Akrilik is 15.2 times more volatile than Turkiye Halk Bankasi. It trades about 0.04 of its potential returns per unit of risk. Turkiye Halk Bankasi is currently generating about 0.03 per unit of risk. If you would invest 702.00 in Aksa Akrilik Kimya on September 23, 2024 and sell it today you would earn a total of 439.00 from holding Aksa Akrilik Kimya or generate 62.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aksa Akrilik Kimya vs. Turkiye Halk Bankasi
Performance |
Timeline |
Aksa Akrilik Kimya |
Turkiye Halk Bankasi |
Aksa Akrilik and Turkiye Halk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aksa Akrilik and Turkiye Halk
The main advantage of trading using opposite Aksa Akrilik and Turkiye Halk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Turkiye Halk 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 Turkiye Halk will offset losses from the drop in Turkiye Halk's long position.Aksa Akrilik vs. Ford Otomotiv Sanayi | Aksa Akrilik vs. Tofas Turk Otomobil | Aksa Akrilik vs. Hektas Ticaret TAS | Aksa Akrilik vs. Eregli Demir ve |
Turkiye Halk vs. Aksa Akrilik Kimya | Turkiye Halk vs. Tofas Turk Otomobil | Turkiye Halk vs. AK Sigorta AS | Turkiye Halk vs. Is Yatirim Menkul |
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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