Correlation Between Akbank TAS and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Dagi Giyim 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 Dagi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Dagi Giyim Sanayi, you can compare the effects of market volatilities on Akbank TAS and Dagi Giyim 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 Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Dagi Giyim.
Diversification Opportunities for Akbank TAS and Dagi Giyim
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Dagi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi 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 Dagi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Dagi Giyim go up and down completely randomly.
Pair Corralation between Akbank TAS and Dagi Giyim
Assuming the 90 days trading horizon Akbank TAS is expected to under-perform the Dagi Giyim. But the stock apears to be less risky and, when comparing its historical volatility, Akbank TAS is 1.72 times less risky than Dagi Giyim. The stock trades about -0.04 of its potential returns per unit of risk. The Dagi Giyim Sanayi is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,448 in Dagi Giyim Sanayi on October 11, 2024 and sell it today you would earn a total of 355.00 from holding Dagi Giyim Sanayi or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Akbank TAS |
| Dagi Giyim Sanayi |
Akbank TAS and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Dagi Giyim
The main advantage of trading using opposite Akbank TAS and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Dagi Giyim 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 Dagi Giyim will offset losses from the drop in Dagi Giyim'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 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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