Correlation Between Aksa Akrilik and Indeks Bilgisayar

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

Diversification Opportunities for Aksa Akrilik and Indeks Bilgisayar

0.57

Correlation Coefficient

Aksa Akrilik  Indeks Bilgisayar

Very weak diversification

The 3 months correlation between Aksa and Indeks is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Indeks Bilgisayar Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indeks Bilgisayar 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 Indeks Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indeks Bilgisayar has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Indeks Bilgisayar go up and down completely randomly.

Pair Corralation between Aksa Akrilik and Indeks Bilgisayar

Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to under-perform the Indeks Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Aksa Akrilik Kimya is 1.12 times less risky than Indeks Bilgisayar. The stock trades about -0.05 of its potential returns per unit of risk. The Indeks Bilgisayar Sistemleri is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  751.00  in Indeks Bilgisayar Sistemleri on December 28, 2024 and sell it today you would lose (43.00) from holding Indeks Bilgisayar Sistemleri or give up 5.73% of portfolio value over 90 days.

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

Aksa Akrilik Kimya  vs.  Indeks Bilgisayar Sistemleri

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 latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Indeks Bilgisayar

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Aksa Akrilik and Indeks Bilgisayar

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

The idea behind Aksa Akrilik Kimya and Indeks Bilgisayar 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.