Correlation Between Aksa Enerji and Deva Holding

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

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

Diversification Opportunities for Aksa Enerji and Deva Holding

0.83

Correlation Coefficient

Aksa Enerji  Deva Holding

Very poor diversification

The 3 months correlation between Aksa and Deva is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS and Aksa Enerji 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 Enerji Uretim are associated (or correlated) with Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Deva Holding go up and down completely randomly.

Pair Corralation between Aksa Enerji and Deva Holding

Assuming the 90 days trading horizon Aksa Enerji Uretim is expected to generate 0.91 times more return on investment than Deva Holding. However, Aksa Enerji Uretim is 1.1 times less risky than Deva Holding. It trades about -0.01 of its potential returns per unit of risk. Deva Holding AS is currently generating about -0.05 per unit of risk. If you would invest  4,390  in Aksa Enerji Uretim on October 13, 2024 and sell it today you would lose (296.00) from holding Aksa Enerji Uretim or give up 6.74% of portfolio value over 90 days.

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

Aksa Enerji Uretim  vs.  Deva Holding AS

Aksa Enerji Uretim

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Enerji Uretim are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Aksa Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Deva Holding AS

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Deva Holding AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Deva Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aksa Enerji and Deva Holding

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

The idea behind Aksa Enerji Uretim and Deva Holding 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.