Correlation Between Akcansa Cimento and Alkim Kagit

Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Alkim Kagit 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 Akcansa Cimento and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akcansa Cimento Sanayi and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Akcansa Cimento and Alkim Kagit 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 Akcansa Cimento with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Alkim Kagit.

Diversification Opportunities for Akcansa Cimento and Alkim Kagit

0.18

Correlation Coefficient

Akcansa Cimento  Alkim Kagit

Average diversification

The 3 months correlation between Akcansa and Alkim is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Alkim Kagit go up and down completely randomly.

Pair Corralation between Akcansa Cimento and Alkim Kagit

Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.8 times more return on investment than Alkim Kagit. However, Akcansa Cimento Sanayi is 1.25 times less risky than Alkim Kagit. It trades about 0.02 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about -0.1 per unit of risk. If you would invest  17,540  in Akcansa Cimento Sanayi on December 24, 2024 and sell it today you would earn a total of  290.00  from holding Akcansa Cimento Sanayi or generate 1.65% return on investment over 90 days.

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

Akcansa Cimento Sanayi  vs.  Alkim Kagit Sanayi

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Akcansa Cimento is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Alkim Kagit Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alkim Kagit Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Akcansa Cimento and Alkim Kagit

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

The idea behind Akcansa Cimento Sanayi and Alkim Kagit Sanayi 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.