Correlation Between SASA Polyester and Aygaz AS

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

SASA Polyester Sanayi  vs.  Aygaz AS

 Performance 
       Timeline  
SASA Polyester Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SASA Polyester is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Aygaz AS 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Aygaz AS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Aygaz AS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind SASA Polyester Sanayi and Aygaz AS 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.
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.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years