Correlation Between Armada Hflr and Akcansa Cimento

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

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

Diversification Opportunities for Armada Hflr and Akcansa Cimento

-0.38

Correlation Coefficient

Armada Hflr  Akcansa Cimento

Very good diversification

The 3 months correlation between Armada and Akcansa is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Armada Hflr and Akcansa Cimento

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Akcansa Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.89 times less risky than Akcansa Cimento. The stock trades about -0.18 of its potential returns per unit of risk. The Akcansa Cimento Sanayi is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  16,710  in Akcansa Cimento Sanayi on December 3, 2024 and sell it today you would earn a total of  530.00  from holding Akcansa Cimento Sanayi or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.85%
Values	Daily Returns

Armada Hflr Pr  vs.  Akcansa Cimento Sanayi

Armada Hflr Pr

Risk-Adjusted Performance

Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical 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.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward 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 Armada Hflr and Akcansa Cimento

The main advantage of trading using opposite Armada Hflr and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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 Armada Hflr Pr 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.