Correlation Between IZDEMIR Enerji and Aksa Akrilik

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

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

Diversification Opportunities for IZDEMIR Enerji and Aksa Akrilik

0.52

Correlation Coefficient

IZDEMIR Enerji  Aksa Akrilik

Very weak diversification

The 3 months correlation between IZDEMIR and Aksa is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding IZDEMIR Enerji Elektrik and Aksa Akrilik Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Akrilik Kimya and IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik are associated (or correlated) with Aksa Akrilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Akrilik Kimya has no effect on the direction of IZDEMIR Enerji i.e., IZDEMIR Enerji and Aksa Akrilik go up and down completely randomly.

Pair Corralation between IZDEMIR Enerji and Aksa Akrilik

Assuming the 90 days trading horizon IZDEMIR Enerji Elektrik is expected to generate 1.22 times more return on investment than Aksa Akrilik. However, IZDEMIR Enerji is 1.22 times more volatile than Aksa Akrilik Kimya. It trades about 0.06 of its potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about -0.04 per unit of risk. If you would invest  481.00  in IZDEMIR Enerji Elektrik on December 30, 2024 and sell it today you would earn a total of  48.00  from holding IZDEMIR Enerji Elektrik or generate 9.98% return on investment over 90 days.

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

IZDEMIR Enerji Elektrik  vs.  Aksa Akrilik Kimya

IZDEMIR Enerji Elektrik

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in IZDEMIR Enerji Elektrik are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, IZDEMIR Enerji may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Aksa Akrilik Kimya

Risk-Adjusted Performance

Very Weak

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

Pair Trading with IZDEMIR Enerji and Aksa Akrilik

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

The idea behind IZDEMIR Enerji Elektrik and Aksa Akrilik Kimya 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.