Correlation Between Akbank TAS and Saray Matbaacilik

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

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

Diversification Opportunities for Akbank TAS and Saray Matbaacilik

0.02

Correlation Coefficient

Akbank TAS  Saray Matbaacilik

Significant diversification

The 3 months correlation between Akbank and Saray is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Akbank TAS i.e., Akbank TAS and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Akbank TAS and Saray Matbaacilik

Assuming the 90 days trading horizon Akbank TAS is expected to generate 0.63 times more return on investment than Saray Matbaacilik. However, Akbank TAS is 1.59 times less risky than Saray Matbaacilik. It trades about 0.11 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.02 per unit of risk. If you would invest  1,529  in Akbank TAS on October 10, 2024 and sell it today you would earn a total of  4,946  from holding Akbank TAS or generate 323.48% return on investment over 90 days.

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

Akbank TAS  vs.  Saray Matbaacilik Kagitcilik

Akbank TAS

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akbank TAS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Akbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Saray Matbaacilik

Risk-Adjusted Performance

2 of 100

Weak

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

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

The idea behind Akbank TAS and Saray Matbaacilik Kagitcilik 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.