Correlation Between Akbank TAS and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Sekerbank TAS 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 Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Sekerbank TAS, you can compare the effects of market volatilities on Akbank TAS and Sekerbank TAS 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 Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Sekerbank TAS.
Diversification Opportunities for Akbank TAS and Sekerbank TAS
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Sekerbank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Akbank TAS i.e., Akbank TAS and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Akbank TAS and Sekerbank TAS
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.06 times less return on investment than Sekerbank TAS. In addition to that, Akbank TAS is 1.18 times more volatile than Sekerbank TAS. It trades about 0.08 of its total potential returns per unit of risk. Sekerbank TAS is currently generating about 0.09 per unit of volatility. If you would invest 431.00 in Sekerbank TAS on September 12, 2024 and sell it today you would earn a total of 62.00 from holding Sekerbank TAS or generate 14.39% 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. Sekerbank TAS
Performance |
Timeline |
Akbank TAS |
Sekerbank TAS |
Akbank TAS and Sekerbank TAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akbank TAS and Sekerbank TAS
The main advantage of trading using opposite Akbank TAS and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's 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 |
Sekerbank TAS vs. Pamel Yenilenebilir Elektrik | Sekerbank TAS vs. Bosch Fren Sistemleri | Sekerbank TAS vs. Marka Yatirim Holding | Sekerbank TAS vs. Dogus Gayrimenkul Yatirim |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |