Correlation Between Celik Halat and Akbank TAS

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

By analyzing existing cross correlation between Celik Halat ve and Akbank TAS, you can compare the effects of market volatilities on Celik Halat and Akbank TAS 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 Celik Halat with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celik Halat and Akbank TAS.

Diversification Opportunities for Celik Halat and Akbank TAS

0.21

Correlation Coefficient

Celik Halat  Akbank TAS

Modest diversification

The 3 months correlation between Celik and Akbank is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Celik Halat ve and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Celik Halat 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 Celik Halat ve are associated (or correlated) with Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Celik Halat i.e., Celik Halat and Akbank TAS go up and down completely randomly.

Pair Corralation between Celik Halat and Akbank TAS

Assuming the 90 days trading horizon Celik Halat ve is expected to under-perform the Akbank TAS. In addition to that, Celik Halat is 1.79 times more volatile than Akbank TAS. It trades about -0.05 of its total potential returns per unit of risk. Akbank TAS is currently generating about 0.06 per unit of volatility. If you would invest  5,960  in Akbank TAS on September 24, 2024 and sell it today you would earn a total of  110.00  from holding Akbank TAS or generate 1.85% return on investment over 90 days.

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

Celik Halat ve  vs.  Akbank TAS

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

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

Akbank TAS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Celik Halat and Akbank TAS

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

The idea behind Celik Halat ve and Akbank TAS 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.