Correlation Between Aksa Enerji and Pergamon Status

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

Diversification Opportunities for Aksa Enerji and Pergamon Status

-0.12

Correlation Coefficient

Aksa Enerji  Pergamon Status

Good diversification

The 3 months correlation between Aksa and Pergamon is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis 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 Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Pergamon Status go up and down completely randomly.

Pair Corralation between Aksa Enerji and Pergamon Status

Assuming the 90 days trading horizon Aksa Enerji is expected to generate 7.37 times less return on investment than Pergamon Status. But when comparing it to its historical volatility, Aksa Enerji Uretim is 1.55 times less risky than Pergamon Status. It trades about 0.01 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,981  in Pergamon Status Dis on October 5, 2024 and sell it today you would earn a total of  5,229  from holding Pergamon Status Dis or generate 175.41% return on investment over 90 days.

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

Aksa Enerji Uretim  vs.  Pergamon Status Dis

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.

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pergamon Status Dis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Aksa Enerji and Pergamon Status

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

The idea behind Aksa Enerji Uretim and Pergamon Status Dis 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..