Correlation Between Akbank TAS and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Baticim Bati 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 Akbank TAS and Baticim Bati into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Baticim Bati Anadolu, you can compare the effects of market volatilities on Akbank TAS and Baticim Bati 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 Akbank TAS with a short position of Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Baticim Bati.
Diversification Opportunities for Akbank TAS and Baticim Bati
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akbank and Baticim is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu and Akbank TAS 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 Akbank TAS are associated (or correlated) with Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Akbank TAS i.e., Akbank TAS and Baticim Bati go up and down completely randomly.
Pair Corralation between Akbank TAS and Baticim Bati
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.01 times less return on investment than Baticim Bati. But when comparing it to its historical volatility, Akbank TAS is 1.11 times less risky than Baticim Bati. It trades about 0.03 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13,800 in Baticim Bati Anadolu on September 5, 2024 and sell it today you would earn a total of 790.00 from holding Baticim Bati Anadolu or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Baticim Bati Anadolu
Performance |
| Timeline |
| Akbank TAS |
| Baticim Bati Anadolu |
Akbank TAS and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Baticim Bati
The main advantage of trading using opposite Akbank TAS and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
| Baticim Bati vs. Qnb Finansbank AS | Baticim Bati vs. Turkiye Kalkinma Bankasi | Baticim Bati vs. Kocaer Celik Sanayi |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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