Correlation Between Akcansa Cimento and Datagate Bilgisayar

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Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Datagate Bilgisayar 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 Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri, you can compare the effects of market volatilities on Akcansa Cimento and Datagate Bilgisayar 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 Datagate Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Datagate Bilgisayar.

Diversification Opportunities for Akcansa Cimento and Datagate Bilgisayar

AkcansaDatagateDiversified AwayAkcansaDatagateDiversified Away100%
0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Akcansa and Datagate is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar 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 Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Datagate Bilgisayar go up and down completely randomly.

Pair Corralation between Akcansa Cimento and Datagate Bilgisayar

Assuming the 90 days trading horizon Akcansa Cimento is expected to generate 1.6 times less return on investment than Datagate Bilgisayar. In addition to that, Akcansa Cimento is 1.02 times more volatile than Datagate Bilgisayar Malzemeleri. It trades about 0.08 of its total potential returns per unit of risk. Datagate Bilgisayar Malzemeleri is currently generating about 0.12 per unit of volatility. If you would invest  3,890  in Datagate Bilgisayar Malzemeleri on October 7, 2024 and sell it today you would earn a total of  764.00  from holding Datagate Bilgisayar Malzemeleri or generate 19.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Akcansa Cimento Sanayi  vs.  Datagate Bilgisayar Malzemeler

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0510152025
JavaScript chart by amCharts 3.21.15AKCNS DGATE
       Timeline  
Akcansa Cimento Sanayi 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akcansa Cimento may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan150160170180190
Datagate Bilgisayar 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Datagate Bilgisayar demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3840424446

Akcansa Cimento and Datagate Bilgisayar Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.77-6.57-4.36-2.160.03872.324.656.979.3 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15AKCNS DGATE
       Returns  

Pair Trading with Akcansa Cimento and Datagate Bilgisayar

The main advantage of trading using opposite Akcansa Cimento and Datagate Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Datagate Bilgisayar 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 Datagate Bilgisayar will offset losses from the drop in Datagate Bilgisayar's long position.
The idea behind Akcansa Cimento Sanayi and Datagate Bilgisayar Malzemeleri 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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