Correlation Between Aksa Enerji and Enerjisa Enerji

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

Diversification Opportunities for Aksa Enerji and Enerjisa Enerji

0.58

Correlation Coefficient

Aksa Enerji  Enerjisa Enerji

Very weak diversification

The 3 months correlation between Aksa and Enerjisa is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Enerjisa Enerji AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerjisa Enerji 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 Enerjisa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerjisa Enerji AS has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Enerjisa Enerji go up and down completely randomly.

Pair Corralation between Aksa Enerji and Enerjisa Enerji

Assuming the 90 days trading horizon Aksa Enerji is expected to generate 1.29 times less return on investment than Enerjisa Enerji. In addition to that, Aksa Enerji is 1.04 times more volatile than Enerjisa Enerji AS. It trades about 0.06 of its total potential returns per unit of risk. Enerjisa Enerji AS is currently generating about 0.07 per unit of volatility. If you would invest  4,449  in Enerjisa Enerji AS on October 5, 2024 and sell it today you would earn a total of  1,751  from holding Enerjisa Enerji AS or generate 39.36% return on investment over 90 days.

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

Aksa Enerji Uretim  vs.  Enerjisa Enerji AS

Aksa Enerji Uretim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Enerji Uretim are ranked lower than 8 (%) 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.

Enerjisa Enerji AS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enerjisa Enerji AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Enerjisa Enerji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Aksa Enerji and Enerjisa Enerji

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

The idea behind Aksa Enerji Uretim and Enerjisa Enerji 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.

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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.