Correlation Between Pegasus Hava and Aksa Enerji

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

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

Diversification Opportunities for Pegasus Hava and Aksa Enerji

0.16

Correlation Coefficient

Pegasus Hava  Aksa Enerji

Average diversification

The 3 months correlation between Pegasus and Aksa is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim and Pegasus Hava 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 Pegasus Hava Tasimaciligi are associated (or correlated) with Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Aksa Enerji go up and down completely randomly.

Pair Corralation between Pegasus Hava and Aksa Enerji

Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 5.87 times more return on investment than Aksa Enerji. However, Pegasus Hava is 5.87 times more volatile than Aksa Enerji Uretim. It trades about 0.04 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.0 per unit of risk. If you would invest  10,310  in Pegasus Hava Tasimaciligi on September 23, 2024 and sell it today you would earn a total of  11,820  from holding Pegasus Hava Tasimaciligi or generate 114.65% return on investment over 90 days.

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

Pegasus Hava Tasimaciligi  vs.  Aksa Enerji Uretim

Pegasus Hava Tasimaciligi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pegasus Hava Tasimaciligi 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.

Aksa Enerji Uretim

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pegasus Hava and Aksa Enerji

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

The idea behind Pegasus Hava Tasimaciligi and Aksa Enerji Uretim 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.