Correlation Between Apple and Akbank Turk

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

By analyzing existing cross correlation between Apple Inc and Akbank Turk Anonim, you can compare the effects of market volatilities on Apple and Akbank Turk 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 Apple with a short position of Akbank Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Akbank Turk.

Diversification Opportunities for Apple and Akbank Turk

-0.28

Correlation Coefficient

Apple  Akbank Turk

Very good diversification

The 3 months correlation between Apple and Akbank is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Akbank Turk Anonim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank Turk Anonim and Apple 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 Apple Inc are associated (or correlated) with Akbank Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank Turk Anonim has no effect on the direction of Apple i.e., Apple and Akbank Turk go up and down completely randomly.

Pair Corralation between Apple and Akbank Turk

Given the investment horizon of 90 days Apple Inc is expected to under-perform the Akbank Turk. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.99 times less risky than Akbank Turk. The stock trades about -0.15 of its potential returns per unit of risk. The Akbank Turk Anonim is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  359.00  in Akbank Turk Anonim on December 20, 2024 and sell it today you would earn a total of  46.00  from holding Akbank Turk Anonim or generate 12.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Apple Inc  vs.  Akbank Turk Anonim

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Akbank Turk Anonim

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akbank Turk Anonim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Akbank Turk showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and Akbank Turk

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

The idea behind Apple Inc and Akbank Turk Anonim 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.