Correlation Between Akbank Turk and Oakworth Capital

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

By analyzing existing cross correlation between Akbank Turk Anonim and Oakworth Capital, you can compare the effects of market volatilities on Akbank Turk and Oakworth Capital 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 Turk with a short position of Oakworth Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank Turk and Oakworth Capital.

Diversification Opportunities for Akbank Turk and Oakworth Capital

-0.02

Correlation Coefficient

Akbank Turk  Oakworth Capital

Good diversification

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

Pair Corralation between Akbank Turk and Oakworth Capital

Assuming the 90 days horizon Akbank Turk Anonim is expected to under-perform the Oakworth Capital. In addition to that, Akbank Turk is 5.3 times more volatile than Oakworth Capital. It trades about -0.01 of its total potential returns per unit of risk. Oakworth Capital is currently generating about 0.03 per unit of volatility. If you would invest  3,150  in Oakworth Capital on December 21, 2024 and sell it today you would earn a total of  50.00  from holding Oakworth Capital or generate 1.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Akbank Turk Anonim  vs.  Oakworth Capital

Akbank Turk Anonim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akbank Turk Anonim has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Akbank Turk is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oakworth Capital

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oakworth Capital are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking signals, Oakworth Capital is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Akbank Turk and Oakworth Capital

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

The idea behind Akbank Turk Anonim and Oakworth Capital 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.