Correlation Between Aksa Enerji and Dogus Otomotiv

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

Diversification Opportunities for Aksa Enerji and Dogus Otomotiv

0.51

Correlation Coefficient

Aksa Enerji  Dogus Otomotiv

Very weak diversification

The 3 months correlation between Aksa and Dogus is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Dogus Otomotiv Servis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Otomotiv Servis 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 Dogus Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Otomotiv Servis has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Dogus Otomotiv go up and down completely randomly.

Pair Corralation between Aksa Enerji and Dogus Otomotiv

Assuming the 90 days trading horizon Aksa Enerji Uretim is expected to generate 1.23 times more return on investment than Dogus Otomotiv. However, Aksa Enerji is 1.23 times more volatile than Dogus Otomotiv Servis. It trades about -0.07 of its potential returns per unit of risk. Dogus Otomotiv Servis is currently generating about -0.11 per unit of risk. If you would invest  4,430  in Aksa Enerji Uretim on September 24, 2024 and sell it today you would lose (834.00) from holding Aksa Enerji Uretim or give up 18.83% of portfolio value over 90 days.

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

Aksa Enerji Uretim  vs.  Dogus Otomotiv Servis

Aksa Enerji Uretim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aksa Enerji Uretim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Dogus Otomotiv Servis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dogus Otomotiv Servis 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.

Pair Trading with Aksa Enerji and Dogus Otomotiv

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

The idea behind Aksa Enerji Uretim and Dogus Otomotiv Servis 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.