Correlation Between Penta Teknoloji and Akcansa Cimento

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

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

Diversification Opportunities for Penta Teknoloji and Akcansa Cimento

0.44

Correlation Coefficient

Penta Teknoloji  Akcansa Cimento

Very weak diversification

The 3 months correlation between Penta and Akcansa is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Penta Teknoloji Urunleri 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 Penta Teknoloji 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 Penta Teknoloji Urunleri 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 Penta Teknoloji i.e., Penta Teknoloji and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Penta Teknoloji and Akcansa Cimento

Assuming the 90 days trading horizon Penta Teknoloji Urunleri is expected to under-perform the Akcansa Cimento. In addition to that, Penta Teknoloji is 1.03 times more volatile than Akcansa Cimento Sanayi. It trades about -0.07 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.0 per unit of volatility. If you would invest  16,788  in Akcansa Cimento Sanayi on December 30, 2024 and sell it today you would lose (278.00) from holding Akcansa Cimento Sanayi or give up 1.66% of portfolio value over 90 days.

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

Penta Teknoloji Urunleri  vs.  Akcansa Cimento Sanayi

Penta Teknoloji Urunleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Penta Teknoloji Urunleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akcansa Cimento Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Penta Teknoloji and Akcansa Cimento

The main advantage of trading using opposite Penta Teknoloji and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penta Teknoloji 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 Penta Teknoloji Urunleri 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.