Correlation Between Adese Gayrimenkul and AK Sigorta

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

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

Diversification Opportunities for Adese Gayrimenkul and AK Sigorta

0.58

Correlation Coefficient

Adese Gayrimenkul  AK Sigorta

Very weak diversification

The 3 months correlation between Adese and AKGRT is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Adese Gayrimenkul Yatirim and AK Sigorta AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AK Sigorta AS and Adese Gayrimenkul 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 Adese Gayrimenkul Yatirim are associated (or correlated) with AK Sigorta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AK Sigorta AS has no effect on the direction of Adese Gayrimenkul i.e., Adese Gayrimenkul and AK Sigorta go up and down completely randomly.

Pair Corralation between Adese Gayrimenkul and AK Sigorta

Assuming the 90 days trading horizon Adese Gayrimenkul Yatirim is expected to under-perform the AK Sigorta. But the stock apears to be less risky and, when comparing its historical volatility, Adese Gayrimenkul Yatirim is 1.14 times less risky than AK Sigorta. The stock trades about -0.07 of its potential returns per unit of risk. The AK Sigorta AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  722.00  in AK Sigorta AS on December 28, 2024 and sell it today you would lose (51.00) from holding AK Sigorta AS or give up 7.06% of portfolio value over 90 days.

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

Adese Gayrimenkul Yatirim  vs.  AK Sigorta AS

Adese Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adese Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

AK Sigorta AS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Adese Gayrimenkul and AK Sigorta

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

The idea behind Adese Gayrimenkul Yatirim and AK Sigorta AS 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.