Correlation Between Akbank TAS and Dogu Aras
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Dogu Aras 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 Akbank TAS and Dogu Aras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Dogu Aras Enerji, you can compare the effects of market volatilities on Akbank TAS and Dogu Aras 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 Akbank TAS with a short position of Dogu Aras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Dogu Aras.
Diversification Opportunities for Akbank TAS and Dogu Aras
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akbank and Dogu is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Dogu Aras Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogu Aras Enerji and Akbank TAS 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 Akbank TAS are associated (or correlated) with Dogu Aras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogu Aras Enerji has no effect on the direction of Akbank TAS i.e., Akbank TAS and Dogu Aras go up and down completely randomly.
Pair Corralation between Akbank TAS and Dogu Aras
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.44 times less return on investment than Dogu Aras. But when comparing it to its historical volatility, Akbank TAS is 4.23 times less risky than Dogu Aras. It trades about 0.09 of its potential returns per unit of risk. Dogu Aras Enerji is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,929 in Dogu Aras Enerji on September 23, 2024 and sell it today you would lose (699.00) from holding Dogu Aras Enerji or give up 11.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.2% |
Values | Daily Returns |
Akbank TAS vs. Dogu Aras Enerji
Performance |
Timeline |
Akbank TAS |
Dogu Aras Enerji |
Akbank TAS and Dogu Aras Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akbank TAS and Dogu Aras
The main advantage of trading using opposite Akbank TAS and Dogu Aras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Dogu Aras 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 Dogu Aras will offset losses from the drop in Dogu Aras' long position.Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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