Correlation Between Aksa Akrilik and Bosch Fren

Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Bosch Fren 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 Bosch Fren 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 Bosch Fren Sistemleri, you can compare the effects of market volatilities on Aksa Akrilik and Bosch Fren 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 Bosch Fren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Bosch Fren.

Diversification Opportunities for Aksa Akrilik and Bosch Fren

-0.55

Correlation Coefficient

Aksa Akrilik  Bosch Fren

Excellent diversification

The 3 months correlation between Aksa and Bosch is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Bosch Fren Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Fren Sistemleri 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 Bosch Fren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Fren Sistemleri has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Bosch Fren go up and down completely randomly.

Pair Corralation between Aksa Akrilik and Bosch Fren

Assuming the 90 days trading horizon Aksa Akrilik is expected to generate 1.01 times less return on investment than Bosch Fren. But when comparing it to its historical volatility, Aksa Akrilik Kimya is 1.0 times less risky than Bosch Fren. It trades about 0.04 of its potential returns per unit of risk. Bosch Fren Sistemleri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  39,835  in Bosch Fren Sistemleri on October 12, 2024 and sell it today you would earn a total of  27,665  from holding Bosch Fren Sistemleri or generate 69.45% return on investment over 90 days.

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

Aksa Akrilik Kimya  vs.  Bosch Fren Sistemleri

Aksa Akrilik Kimya

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Akrilik Kimya are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Aksa Akrilik unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bosch Fren Sistemleri

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bosch Fren Sistemleri are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bosch Fren may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Aksa Akrilik and Bosch Fren

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

The idea behind Aksa Akrilik Kimya and Bosch Fren Sistemleri 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.