Correlation Between Akbank TAS and Ihlas Yayin
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Ihlas Yayin 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 Ihlas Yayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Ihlas Yayin Holding, you can compare the effects of market volatilities on Akbank TAS and Ihlas Yayin 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 Ihlas Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Ihlas Yayin.
Diversification Opportunities for Akbank TAS and Ihlas Yayin
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akbank and Ihlas is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin Holding 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 Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of Akbank TAS i.e., Akbank TAS and Ihlas Yayin go up and down completely randomly.
Pair Corralation between Akbank TAS and Ihlas Yayin
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.11 times less return on investment than Ihlas Yayin. But when comparing it to its historical volatility, Akbank TAS is 1.57 times less risky than Ihlas Yayin. It trades about 0.14 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Ihlas Yayin Holding on September 19, 2024 and sell it today you would earn a total of 284.00 from holding Ihlas Yayin Holding or generate 312.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Ihlas Yayin Holding
Performance |
| Timeline |
| Akbank TAS |
| Ihlas Yayin Holding |
Akbank TAS and Ihlas Yayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Ihlas Yayin
The main advantage of trading using opposite Akbank TAS and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Ihlas Yayin 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 Ihlas Yayin will offset losses from the drop in Ihlas Yayin's long position.| Akbank TAS vs. Pamel Yenilenebilir Elektrik | Akbank TAS vs. Bosch Fren Sistemleri | Akbank TAS vs. Marka Yatirim Holding | Akbank TAS vs. Dogus Gayrimenkul Yatirim |
| Ihlas Yayin vs. Datagate Bilgisayar Malzemeleri | Ihlas Yayin vs. Galatasaray Sportif Sinai | Ihlas Yayin vs. Politeknik Metal Sanayi | Ihlas Yayin vs. Akbank TAS |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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