Correlation Between Aselsan Elektronik and Europower Enerji

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

By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Europower Enerji ve, you can compare the effects of market volatilities on Aselsan Elektronik and Europower 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 Aselsan Elektronik with a short position of Europower Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Europower Enerji.

Diversification Opportunities for Aselsan Elektronik and Europower Enerji

0.0

Correlation Coefficient

Aselsan Elektronik  Europower Enerji

Pay attention - limited upside

The 3 months correlation between Aselsan and Europower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Europower Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europower Enerji and Aselsan Elektronik 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 Aselsan Elektronik Sanayi are associated (or correlated) with Europower Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europower Enerji has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Europower Enerji go up and down completely randomly.

Pair Corralation between Aselsan Elektronik and Europower Enerji

If you would invest  0.00  in Aselsan Elektronik Sanayi on September 19, 2024 and sell it today you would earn a total of  0.00  from holding Aselsan Elektronik Sanayi or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Aselsan Elektronik Sanayi  vs.  Europower Enerji ve

Aselsan Elektronik Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Europower Enerji

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Europower Enerji ve are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Europower Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aselsan Elektronik and Europower Enerji

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

The idea behind Aselsan Elektronik Sanayi and Europower Enerji ve 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.