Correlation Between Turkiye Vakiflar and Akcansa Cimento

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

By analyzing existing cross correlation between Turkiye Vakiflar Bankasi and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Turkiye Vakiflar and Akcansa Cimento 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 Turkiye Vakiflar with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Vakiflar and Akcansa Cimento.

Diversification Opportunities for Turkiye Vakiflar and Akcansa Cimento

0.11

Correlation Coefficient

Turkiye Vakiflar  Akcansa Cimento

Average diversification

The 3 months correlation between Turkiye and Akcansa is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Vakiflar Bankasi and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Turkiye Vakiflar 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 Turkiye Vakiflar Bankasi are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Turkiye Vakiflar i.e., Turkiye Vakiflar and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Turkiye Vakiflar and Akcansa Cimento

Assuming the 90 days trading horizon Turkiye Vakiflar Bankasi is expected to generate 1.67 times more return on investment than Akcansa Cimento. However, Turkiye Vakiflar is 1.67 times more volatile than Akcansa Cimento Sanayi. It trades about 0.09 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about -0.06 per unit of risk. If you would invest  2,028  in Turkiye Vakiflar Bankasi on April 7, 2024 and sell it today you would earn a total of  210.00  from holding Turkiye Vakiflar Bankasi or generate 10.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Turkiye Vakiflar Bankasi  vs.  Akcansa Cimento Sanayi

Turkiye Vakiflar Bankasi

Risk-Adjusted Performance

12 of 100

Good

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

Akcansa Cimento Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Turkiye Vakiflar and Akcansa Cimento

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

The idea behind Turkiye Vakiflar Bankasi and Akcansa Cimento Sanayi 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.