Correlation Between Aygaz AS and Pinar Entegre

Can any of the company-specific risk be diversified away by investing in both Aygaz AS and Pinar Entegre 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 Aygaz AS and Pinar Entegre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aygaz AS and Pinar Entegre Et, you can compare the effects of market volatilities on Aygaz AS and Pinar Entegre 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 Aygaz AS with a short position of Pinar Entegre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aygaz AS and Pinar Entegre.

Diversification Opportunities for Aygaz AS and Pinar Entegre

0.36

Correlation Coefficient

Aygaz AS  Pinar Entegre

Weak diversification

The 3 months correlation between Aygaz and Pinar is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aygaz AS and Pinar Entegre Et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinar Entegre Et and Aygaz AS 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 Aygaz AS are associated (or correlated) with Pinar Entegre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinar Entegre Et has no effect on the direction of Aygaz AS i.e., Aygaz AS and Pinar Entegre go up and down completely randomly.

Pair Corralation between Aygaz AS and Pinar Entegre

Assuming the 90 days trading horizon Aygaz AS is expected to generate 0.87 times more return on investment than Pinar Entegre. However, Aygaz AS is 1.15 times less risky than Pinar Entegre. It trades about 0.21 of its potential returns per unit of risk. Pinar Entegre Et is currently generating about 0.0 per unit of risk. If you would invest  14,290  in Aygaz AS on September 12, 2024 and sell it today you would earn a total of  3,700  from holding Aygaz AS or generate 25.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Aygaz AS  vs.  Pinar Entegre Et

Aygaz AS

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aygaz AS are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Aygaz AS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pinar Entegre Et

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Aygaz AS and Pinar Entegre

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

The idea behind Aygaz AS and Pinar Entegre Et 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .