Correlation Between Aksa Akrilik and Aygaz AS

Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Aygaz AS 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 Aksa Akrilik and Aygaz AS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aksa Akrilik Kimya and Aygaz AS, you can compare the effects of market volatilities on Aksa Akrilik and Aygaz AS 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 Aksa Akrilik with a short position of Aygaz AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Aygaz AS.

Diversification Opportunities for Aksa Akrilik and Aygaz AS

-0.29

Correlation Coefficient

Aksa Akrilik  Aygaz AS

Very good diversification

The 3 months correlation between Aksa and Aygaz is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Aygaz AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aygaz AS and Aksa Akrilik 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 Aksa Akrilik Kimya are associated (or correlated) with Aygaz AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aygaz AS has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Aygaz AS go up and down completely randomly.

Pair Corralation between Aksa Akrilik and Aygaz AS

Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to under-perform the Aygaz AS. In addition to that, Aksa Akrilik is 1.28 times more volatile than Aygaz AS. It trades about -0.04 of its total potential returns per unit of risk. Aygaz AS is currently generating about 0.03 per unit of volatility. If you would invest  16,500  in Aygaz AS on December 29, 2024 and sell it today you would earn a total of  380.00  from holding Aygaz AS or generate 2.3% return on investment over 90 days.

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

Aksa Akrilik Kimya  vs.  Aygaz AS

Aksa Akrilik Kimya

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aksa Akrilik Kimya has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Aksa Akrilik is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Aygaz AS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aygaz AS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Aygaz AS is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Aksa Akrilik and Aygaz AS

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

The idea behind Aksa Akrilik Kimya and Aygaz AS 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.