Correlation Between Jantsa Jant and Akbank TAS

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

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

Diversification Opportunities for Jantsa Jant and Akbank TAS

-0.27

Correlation Coefficient

Jantsa Jant  Akbank TAS

Very good diversification

The 3 months correlation between Jantsa and Akbank is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jantsa Jant Sanayi and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Jantsa Jant 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 Jantsa Jant Sanayi 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 Jantsa Jant i.e., Jantsa Jant and Akbank TAS go up and down completely randomly.

Pair Corralation between Jantsa Jant and Akbank TAS

Assuming the 90 days trading horizon Jantsa Jant Sanayi is expected to under-perform the Akbank TAS. In addition to that, Jantsa Jant is 1.23 times more volatile than Akbank TAS. It trades about -0.01 of its total potential returns per unit of risk. Akbank TAS is currently generating about 0.1 per unit of volatility. If you would invest  6,340  in Akbank TAS on October 4, 2024 and sell it today you would earn a total of  280.00  from holding Akbank TAS or generate 4.42% return on investment over 90 days.

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

Jantsa Jant Sanayi  vs.  Akbank TAS

Jantsa Jant Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Akbank TAS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akbank TAS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jantsa Jant and Akbank TAS

The main advantage of trading using opposite Jantsa Jant and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jantsa Jant 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 Jantsa Jant Sanayi 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.