Correlation Between Akbank TAS and Kocaer Celik
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Kocaer Celik 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 Kocaer Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Kocaer Celik Sanayi, you can compare the effects of market volatilities on Akbank TAS and Kocaer Celik 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 Kocaer Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Kocaer Celik.
Diversification Opportunities for Akbank TAS and Kocaer Celik
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Kocaer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Kocaer Celik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kocaer Celik 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 Kocaer Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kocaer Celik Sanayi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Kocaer Celik go up and down completely randomly.
Pair Corralation between Akbank TAS and Kocaer Celik
Assuming the 90 days trading horizon Akbank TAS is expected to generate 0.86 times more return on investment than Kocaer Celik. However, Akbank TAS is 1.16 times less risky than Kocaer Celik. It trades about 0.1 of its potential returns per unit of risk. Kocaer Celik Sanayi is currently generating about 0.06 per unit of risk. If you would invest 3,350 in Akbank TAS on September 3, 2024 and sell it today you would earn a total of 2,750 from holding Akbank TAS or generate 82.09% 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. Kocaer Celik Sanayi
Performance |
| Timeline |
| Akbank TAS |
| Kocaer Celik Sanayi |
Akbank TAS and Kocaer Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Kocaer Celik
The main advantage of trading using opposite Akbank TAS and Kocaer Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Kocaer Celik 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 Kocaer Celik will offset losses from the drop in Kocaer Celik'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 |
| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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