Correlation Between Akbank TAS and Cemtas Celik

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

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

Diversification Opportunities for Akbank TAS and Cemtas Celik

0.79

Correlation Coefficient

Akbank TAS  Cemtas Celik

Poor diversification

The 3 months correlation between Akbank and Cemtas is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina 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 Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Akbank TAS i.e., Akbank TAS and Cemtas Celik go up and down completely randomly.

Pair Corralation between Akbank TAS and Cemtas Celik

Assuming the 90 days trading horizon Akbank TAS is expected to under-perform the Cemtas Celik. In addition to that, Akbank TAS is 1.25 times more volatile than Cemtas Celik Makina. It trades about -0.09 of its total potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.03 per unit of volatility. If you would invest  896.00  in Cemtas Celik Makina on December 25, 2024 and sell it today you would earn a total of  28.00  from holding Cemtas Celik Makina or generate 3.12% return on investment over 90 days.

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

Akbank TAS  vs.  Cemtas Celik Makina

Akbank TAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akbank TAS 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.

Cemtas Celik Makina

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Cemtas Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Akbank TAS and Cemtas Celik

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

The idea behind Akbank TAS and Cemtas Celik Makina 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.