Correlation Between Hedef Girisim and Akcansa Cimento

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

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

Diversification Opportunities for Hedef Girisim and Akcansa Cimento

0.89

Correlation Coefficient

Hedef Girisim  Akcansa Cimento

Very poor diversification

The 3 months correlation between Hedef and Akcansa is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi 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 Hedef Girisim 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 Hedef Girisim Sermayesi 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 Hedef Girisim i.e., Hedef Girisim and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Hedef Girisim and Akcansa Cimento

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 1.14 times more return on investment than Akcansa Cimento. However, Hedef Girisim is 1.14 times more volatile than Akcansa Cimento Sanayi. It trades about 0.15 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.17 per unit of risk. If you would invest  138.00  in Hedef Girisim Sermayesi on October 24, 2024 and sell it today you would earn a total of  35.00  from holding Hedef Girisim Sermayesi or generate 25.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Hedef Girisim Sermayesi  vs.  Akcansa Cimento Sanayi

Hedef Girisim Sermayesi

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hedef Girisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akcansa Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hedef Girisim and Akcansa Cimento

The main advantage of trading using opposite Hedef Girisim and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Girisim 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 Hedef Girisim Sermayesi 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.