Correlation Between Lokman Hekim and Akcansa Cimento

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

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

Diversification Opportunities for Lokman Hekim and Akcansa Cimento

0.72

Correlation Coefficient

Lokman Hekim  Akcansa Cimento

Poor diversification

The 3 months correlation between Lokman and Akcansa is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lokman Hekim Engurusag 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 Lokman Hekim 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 Lokman Hekim Engurusag 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 Lokman Hekim i.e., Lokman Hekim and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Lokman Hekim and Akcansa Cimento

Assuming the 90 days trading horizon Lokman Hekim Engurusag is expected to generate 0.59 times more return on investment than Akcansa Cimento. However, Lokman Hekim Engurusag is 1.69 times less risky than Akcansa Cimento. It trades about -0.34 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about -0.29 per unit of risk. If you would invest  2,150  in Lokman Hekim Engurusag on December 2, 2024 and sell it today you would lose (259.00) from holding Lokman Hekim Engurusag or give up 12.05% of portfolio value over 90 days.

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

Lokman Hekim Engurusag  vs.  Akcansa Cimento Sanayi

Lokman Hekim Engurusag

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lokman Hekim Engurusag are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Lokman Hekim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Akcansa Cimento is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Lokman Hekim and Akcansa Cimento

The main advantage of trading using opposite Lokman Hekim and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lokman Hekim 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 Lokman Hekim Engurusag 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..