Correlation Between Ayes Celik and Akcansa Cimento

Can any of the company-specific risk be diversified away by investing in both Ayes Celik and Akcansa Cimento 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 Ayes Celik and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ayes Celik Hasir and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Ayes Celik and Akcansa Cimento 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 Ayes Celik with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayes Celik and Akcansa Cimento.

Diversification Opportunities for Ayes Celik and Akcansa Cimento

0.01

Correlation Coefficient

Ayes Celik  Akcansa Cimento

Significant diversification

The 3 months correlation between Ayes and Akcansa is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ayes Celik Hasir and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Ayes Celik 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 Ayes Celik Hasir are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Ayes Celik i.e., Ayes Celik and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Ayes Celik and Akcansa Cimento

Assuming the 90 days trading horizon Ayes Celik Hasir is expected to generate 1.0 times more return on investment than Akcansa Cimento. However, Ayes Celik is 1.0 times more volatile than Akcansa Cimento Sanayi. It trades about 0.05 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.0 per unit of risk. If you would invest  878.00  in Ayes Celik Hasir on December 29, 2024 and sell it today you would earn a total of  52.00  from holding Ayes Celik Hasir or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Ayes Celik Hasir  vs.  Akcansa Cimento Sanayi

Ayes Celik Hasir

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ayes Celik Hasir are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ayes Celik may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ayes Celik and Akcansa Cimento

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

The idea behind Ayes Celik Hasir and Akcansa Cimento Sanayi 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.