Correlation Between Tekfen Holding and Aksa Enerji

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

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

Diversification Opportunities for Tekfen Holding and Aksa Enerji

-0.3

Correlation Coefficient

Tekfen Holding  Aksa Enerji

Very good diversification

The 3 months correlation between Tekfen and Aksa is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS 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 Tekfen Holding 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 Tekfen Holding AS 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 Tekfen Holding i.e., Tekfen Holding and Aksa Enerji go up and down completely randomly.

Pair Corralation between Tekfen Holding and Aksa Enerji

Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.42 times more return on investment than Aksa Enerji. However, Tekfen Holding is 1.42 times more volatile than Aksa Enerji Uretim. It trades about 0.05 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about -0.01 per unit of risk. If you would invest  5,650  in Tekfen Holding AS on October 13, 2024 and sell it today you would earn a total of  870.00  from holding Tekfen Holding AS or generate 15.4% return on investment over 90 days.

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

Tekfen Holding AS  vs.  Aksa Enerji Uretim

Tekfen Holding AS

Risk-Adjusted Performance

1 of 100

Weak

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

Aksa Enerji Uretim

Risk-Adjusted Performance

14 of 100

Good

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

Pair Trading with Tekfen Holding and Aksa Enerji

The main advantage of trading using opposite Tekfen Holding and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding 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 Tekfen Holding AS 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.