Correlation Between Akcansa Cimento and Yapi Ve

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Yapi Ve 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 Yapi Ve 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 Yapi ve Kredi, you can compare the effects of market volatilities on Akcansa Cimento and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Yapi Ve.

Diversification Opportunities for Akcansa Cimento and Yapi Ve

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Akcansa and Yapi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Yapi Ve go up and down completely randomly.

Pair Corralation between Akcansa Cimento and Yapi Ve

Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 1.04 times more return on investment than Yapi Ve. However, Akcansa Cimento is 1.04 times more volatile than Yapi ve Kredi. It trades about 0.1 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.11 per unit of risk. If you would invest  4,554  in Akcansa Cimento Sanayi on October 4, 2024 and sell it today you would earn a total of  13,496  from holding Akcansa Cimento Sanayi or generate 296.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Akcansa Cimento Sanayi  vs.  Yapi ve Kredi

 Performance 
       Timeline  
Akcansa Cimento Sanayi 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akcansa Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Yapi ve Kredi 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Akcansa Cimento and Yapi Ve Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Akcansa Cimento and Yapi Ve

The main advantage of trading using opposite Akcansa Cimento and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve's long position.
The idea behind Akcansa Cimento Sanayi and Yapi ve Kredi 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Fundamental Analysis
View fundamental data based on most recent published financial statements
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk