Correlation Between Yapi Ve and Aksa Enerji

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

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

Diversification Opportunities for Yapi Ve and Aksa Enerji

0.68

Correlation Coefficient

Yapi Ve  Aksa Enerji

Poor diversification

The 3 months correlation between Yapi and Aksa is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi 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 Yapi Ve 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 Yapi ve Kredi 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 Yapi Ve i.e., Yapi Ve and Aksa Enerji go up and down completely randomly.

Pair Corralation between Yapi Ve and Aksa Enerji

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 1.12 times more return on investment than Aksa Enerji. However, Yapi Ve is 1.12 times more volatile than Aksa Enerji Uretim. It trades about 0.11 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.02 per unit of risk. If you would invest  809.00  in Yapi ve Kredi on October 4, 2024 and sell it today you would earn a total of  2,371  from holding Yapi ve Kredi or generate 293.08% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Aksa Enerji Uretim

Yapi ve Kredi

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Aksa Enerji Uretim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Enerji Uretim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Aksa Enerji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Yapi Ve and Aksa Enerji

The main advantage of trading using opposite Yapi Ve and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve 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 Yapi ve Kredi 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.