Correlation Between Akcansa Cimento and Vestel Beyaz

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

Diversification Opportunities for Akcansa Cimento and Vestel Beyaz

-0.06

Correlation Coefficient

Akcansa Cimento  Vestel Beyaz

Good diversification

The 3 months correlation between Akcansa and Vestel is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Vestel Beyaz Esya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestel Beyaz Esya 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 Vestel Beyaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestel Beyaz Esya has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Vestel Beyaz go up and down completely randomly.

Pair Corralation between Akcansa Cimento and Vestel Beyaz

Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 1.67 times more return on investment than Vestel Beyaz. However, Akcansa Cimento is 1.67 times more volatile than Vestel Beyaz Esya. It trades about 0.15 of its potential returns per unit of risk. Vestel Beyaz Esya is currently generating about -0.1 per unit of risk. If you would invest  15,780  in Akcansa Cimento Sanayi on October 20, 2024 and sell it today you would earn a total of  2,680  from holding Akcansa Cimento Sanayi or generate 16.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Akcansa Cimento Sanayi  vs.  Vestel Beyaz Esya

Akcansa Cimento Sanayi

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Akcansa Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Vestel Beyaz Esya

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vestel Beyaz Esya has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Akcansa Cimento and Vestel Beyaz

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

The idea behind Akcansa Cimento Sanayi and Vestel Beyaz Esya 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 Global Correlations module to find global opportunities by holding instruments from different markets.