Correlation Between Aksa Akrilik and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Guler Yatirim 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 Guler Yatirim 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 Guler Yatirim Holding, you can compare the effects of market volatilities on Aksa Akrilik and Guler Yatirim 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 Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Guler Yatirim.
Diversification Opportunities for Aksa Akrilik and Guler Yatirim
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aksa and Guler is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Guler Yatirim go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Guler Yatirim
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 1.23 times more return on investment than Guler Yatirim. However, Aksa Akrilik is 1.23 times more volatile than Guler Yatirim Holding. It trades about 0.39 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.1 per unit of risk. If you would invest 903.00 in Aksa Akrilik Kimya on September 25, 2024 and sell it today you would earn a total of 247.00 from holding Aksa Akrilik Kimya or generate 27.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aksa Akrilik Kimya vs. Guler Yatirim Holding
Performance |
Timeline |
Aksa Akrilik Kimya |
Guler Yatirim Holding |
Aksa Akrilik and Guler Yatirim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aksa Akrilik and Guler Yatirim
The main advantage of trading using opposite Aksa Akrilik and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim's long position.Aksa Akrilik vs. Tofas Turk Otomobil | Aksa Akrilik vs. Hektas Ticaret TAS | Aksa Akrilik vs. Eregli Demir ve |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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