Correlation Between Akbank TAS and Euro Kapital
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Euro Kapital 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 Euro Kapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Euro Kapital Yatirim, you can compare the effects of market volatilities on Akbank TAS and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Euro Kapital.
Diversification Opportunities for Akbank TAS and Euro Kapital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Euro is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Akbank TAS i.e., Akbank TAS and Euro Kapital go up and down completely randomly.
Pair Corralation between Akbank TAS and Euro Kapital
Assuming the 90 days trading horizon Akbank TAS is expected to generate 0.71 times more return on investment than Euro Kapital. However, Akbank TAS is 1.41 times less risky than Euro Kapital. It trades about 0.01 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about -0.07 per unit of risk. If you would invest 6,235 in Akbank TAS on September 3, 2024 and sell it today you would lose (135.00) from holding Akbank TAS or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Euro Kapital Yatirim
Performance |
| Timeline |
| Akbank TAS |
| Euro Kapital Yatirim |
Akbank TAS and Euro Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Euro Kapital
The main advantage of trading using opposite Akbank TAS and Euro Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Euro Kapital 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 Euro Kapital will offset losses from the drop in Euro Kapital'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 |
| Euro Kapital vs. Sekerbank TAS | Euro Kapital vs. Turkish Airlines | Euro Kapital vs. Silverline Endustri ve | Euro Kapital vs. Turkiye Kalkinma Bankasi |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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