Correlation Between Akbank TAS and Celik Halat

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

By analyzing existing cross correlation between Akbank TAS and Celik Halat ve, you can compare the effects of market volatilities on Akbank TAS and Celik Halat 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 Celik Halat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Celik Halat.

Diversification Opportunities for Akbank TAS and Celik Halat

0.21

Correlation Coefficient

Akbank TAS  Celik Halat

Modest diversification

The 3 months correlation between Akbank and Celik is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Celik Halat ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celik Halat ve 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 Celik Halat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celik Halat ve has no effect on the direction of Akbank TAS i.e., Akbank TAS and Celik Halat go up and down completely randomly.

Pair Corralation between Akbank TAS and Celik Halat

Assuming the 90 days trading horizon Akbank TAS is expected to generate 0.56 times more return on investment than Celik Halat. However, Akbank TAS is 1.79 times less risky than Celik Halat. It trades about 0.06 of its potential returns per unit of risk. Celik Halat ve is currently generating about -0.05 per unit of risk. If you would invest  5,960  in Akbank TAS on September 24, 2024 and sell it today you would earn a total of  110.00  from holding Akbank TAS or generate 1.85% return on investment over 90 days.

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

Akbank TAS  vs.  Celik Halat ve

Akbank TAS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celik Halat ve 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Akbank TAS and Celik Halat

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

The idea behind Akbank TAS and Celik Halat ve 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.