Correlation Between Bera Holding and Aksa Enerji

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

By analyzing existing cross correlation between Bera Holding AS and Aksa Enerji Uretim, you can compare the effects of market volatilities on Bera Holding and Aksa 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 Bera Holding with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bera Holding and Aksa Enerji.

Diversification Opportunities for Bera Holding and Aksa Enerji

0.71

Correlation Coefficient

Bera Holding  Aksa Enerji

Poor diversification

The 3 months correlation between Bera and Aksa is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bera Holding AS and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim and Bera Holding 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 Bera Holding AS are associated (or correlated) with Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Bera Holding i.e., Bera Holding and Aksa Enerji go up and down completely randomly.

Pair Corralation between Bera Holding and Aksa Enerji

Assuming the 90 days trading horizon Bera Holding is expected to generate 6.82 times less return on investment than Aksa Enerji. In addition to that, Bera Holding is 1.85 times more volatile than Aksa Enerji Uretim. It trades about 0.01 of its total potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.08 per unit of volatility. If you would invest  3,520  in Aksa Enerji Uretim on September 24, 2024 and sell it today you would earn a total of  76.00  from holding Aksa Enerji Uretim or generate 2.16% return on investment over 90 days.

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

Bera Holding AS  vs.  Aksa Enerji Uretim

Bera Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bera Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Aksa Enerji Uretim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aksa Enerji Uretim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Bera Holding and Aksa Enerji

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

The idea behind Bera Holding AS and Aksa Enerji Uretim 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.