Correlation Between Akcansa Cimento and Mercan Kimya
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Mercan Kimya 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 Mercan Kimya 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 Mercan Kimya Sanayi, you can compare the effects of market volatilities on Akcansa Cimento and Mercan Kimya 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 Mercan Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Mercan Kimya.
Diversification Opportunities for Akcansa Cimento and Mercan Kimya
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akcansa and Mercan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Mercan Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercan Kimya 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 Mercan Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercan Kimya Sanayi has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Mercan Kimya go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Mercan Kimya
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.94 times more return on investment than Mercan Kimya. However, Akcansa Cimento Sanayi is 1.06 times less risky than Mercan Kimya. It trades about 0.08 of its potential returns per unit of risk. Mercan Kimya Sanayi is currently generating about 0.01 per unit of risk. If you would invest 6,244 in Akcansa Cimento Sanayi on September 23, 2024 and sell it today you would earn a total of 11,326 from holding Akcansa Cimento Sanayi or generate 181.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.99% |
Values | Daily Returns |
Akcansa Cimento Sanayi vs. Mercan Kimya Sanayi
Performance |
Timeline |
Akcansa Cimento Sanayi |
Mercan Kimya Sanayi |
Akcansa Cimento and Mercan Kimya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akcansa Cimento and Mercan Kimya
The main advantage of trading using opposite Akcansa Cimento and Mercan Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Mercan Kimya 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 Mercan Kimya will offset losses from the drop in Mercan Kimya's long position.Akcansa Cimento vs. Koza Anadolu Metal | Akcansa Cimento vs. Bms Birlesik Metal | Akcansa Cimento vs. Sodas Sodyum Sanayi | Akcansa Cimento vs. Politeknik Metal Sanayi |
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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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