Correlation Between Dogus Otomotiv and Aksa Enerji

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

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

Diversification Opportunities for Dogus Otomotiv and Aksa Enerji

0.51

Correlation Coefficient

Dogus Otomotiv  Aksa Enerji

Very weak diversification

The 3 months correlation between Dogus and Aksa is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis 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 Dogus Otomotiv 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 Dogus Otomotiv Servis 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 Dogus Otomotiv i.e., Dogus Otomotiv and Aksa Enerji go up and down completely randomly.

Pair Corralation between Dogus Otomotiv and Aksa Enerji

Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the Aksa Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 1.11 times less risky than Aksa Enerji. The stock trades about -0.07 of its potential returns per unit of risk. The Aksa Enerji Uretim is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  3,886  in Aksa Enerji Uretim on September 24, 2024 and sell it today you would lose (290.00) from holding Aksa Enerji Uretim or give up 7.46% of portfolio value over 90 days.

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

Dogus Otomotiv Servis  vs.  Aksa Enerji Uretim

Dogus Otomotiv Servis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dogus Otomotiv Servis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm 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 Dogus Otomotiv and Aksa Enerji

The main advantage of trading using opposite Dogus Otomotiv and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv 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 Dogus Otomotiv Servis 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.