Correlation Between SASA Polyester and Aygaz AS
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Aygaz AS 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 SASA Polyester and Aygaz AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and Aygaz AS, you can compare the effects of market volatilities on SASA Polyester and Aygaz AS 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 SASA Polyester with a short position of Aygaz AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Aygaz AS.
Diversification Opportunities for SASA Polyester and Aygaz AS
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SASA and Aygaz is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Aygaz AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aygaz AS and SASA Polyester 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 SASA Polyester Sanayi are associated (or correlated) with Aygaz AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aygaz AS has no effect on the direction of SASA Polyester i.e., SASA Polyester and Aygaz AS go up and down completely randomly.
Pair Corralation between SASA Polyester and Aygaz AS
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Aygaz AS. In addition to that, SASA Polyester is 1.28 times more volatile than Aygaz AS. It trades about -0.01 of its total potential returns per unit of risk. Aygaz AS is currently generating about 0.18 per unit of volatility. If you would invest 14,600 in Aygaz AS on September 13, 2024 and sell it today you would earn a total of 3,170 from holding Aygaz AS or generate 21.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
SASA Polyester Sanayi vs. Aygaz AS
Performance |
Timeline |
SASA Polyester Sanayi |
Aygaz AS |
SASA Polyester and Aygaz AS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SASA Polyester and Aygaz AS
The main advantage of trading using opposite SASA Polyester and Aygaz AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, Aygaz AS 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 Aygaz AS will offset losses from the drop in Aygaz AS's long position.SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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Check out your portfolio center.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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