Correlation Between Akbank TAS and Karsan Otomotiv
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Karsan Otomotiv 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 Karsan Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Karsan Otomotiv Sanayi, you can compare the effects of market volatilities on Akbank TAS and Karsan Otomotiv 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 Karsan Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Karsan Otomotiv.
Diversification Opportunities for Akbank TAS and Karsan Otomotiv
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akbank and Karsan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Karsan Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karsan Otomotiv 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 Karsan Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karsan Otomotiv Sanayi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Karsan Otomotiv go up and down completely randomly.
Pair Corralation between Akbank TAS and Karsan Otomotiv
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.06 times more return on investment than Karsan Otomotiv. However, Akbank TAS is 1.06 times more volatile than Karsan Otomotiv Sanayi. It trades about -0.01 of its potential returns per unit of risk. Karsan Otomotiv Sanayi is currently generating about -0.2 per unit of risk. If you would invest 6,160 in Akbank TAS on August 30, 2024 and sell it today you would lose (215.00) from holding Akbank TAS or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Karsan Otomotiv Sanayi
Performance |
| Timeline |
| Akbank TAS |
| Karsan Otomotiv Sanayi |
Akbank TAS and Karsan Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Karsan Otomotiv
The main advantage of trading using opposite Akbank TAS and Karsan Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Karsan Otomotiv 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 Karsan Otomotiv will offset losses from the drop in Karsan Otomotiv'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 |
| Karsan Otomotiv vs. E Data Teknoloji Pazarlama | Karsan Otomotiv vs. Koza Anadolu Metal | Karsan Otomotiv vs. Akbank TAS | Karsan Otomotiv vs. ICBC Turkey Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |