Correlation Between AK Sigorta and Hedef Girisim

Can any of the company-specific risk be diversified away by investing in both AK Sigorta and Hedef Girisim 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 AK Sigorta and Hedef Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AK Sigorta AS and Hedef Girisim Sermayesi, you can compare the effects of market volatilities on AK Sigorta and Hedef Girisim 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 AK Sigorta with a short position of Hedef Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of AK Sigorta and Hedef Girisim.

Diversification Opportunities for AK Sigorta and Hedef Girisim

0.82

Correlation Coefficient

AK Sigorta  Hedef Girisim

Very poor diversification

The 3 months correlation between AKGRT and Hedef is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding AK Sigorta AS and Hedef Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Girisim Sermayesi and AK Sigorta 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 AK Sigorta AS are associated (or correlated) with Hedef Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Girisim Sermayesi has no effect on the direction of AK Sigorta i.e., AK Sigorta and Hedef Girisim go up and down completely randomly.

Pair Corralation between AK Sigorta and Hedef Girisim

Assuming the 90 days trading horizon AK Sigorta AS is expected to generate 1.17 times more return on investment than Hedef Girisim. However, AK Sigorta is 1.17 times more volatile than Hedef Girisim Sermayesi. It trades about 0.28 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.12 per unit of risk. If you would invest  583.00  in AK Sigorta AS on September 23, 2024 and sell it today you would earn a total of  112.00  from holding AK Sigorta AS or generate 19.21% return on investment over 90 days.

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

AK Sigorta AS  vs.  Hedef Girisim Sermayesi

AK Sigorta AS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AK Sigorta AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, AK Sigorta demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Hedef Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hedef Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Hedef Girisim is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AK Sigorta and Hedef Girisim

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

The idea behind AK Sigorta AS and Hedef Girisim Sermayesi 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.