Correlation Between Akbank TAS and Nigbas Nigde
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Nigbas Nigde 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 Nigbas Nigde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Nigbas Nigde Beton, you can compare the effects of market volatilities on Akbank TAS and Nigbas Nigde 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 Nigbas Nigde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Nigbas Nigde.
Diversification Opportunities for Akbank TAS and Nigbas Nigde
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akbank and Nigbas is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton 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 Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of Akbank TAS i.e., Akbank TAS and Nigbas Nigde go up and down completely randomly.
Pair Corralation between Akbank TAS and Nigbas Nigde
Assuming the 90 days trading horizon Akbank TAS is expected to generate 0.85 times more return on investment than Nigbas Nigde. However, Akbank TAS is 1.18 times less risky than Nigbas Nigde. It trades about 0.13 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about 0.04 per unit of risk. If you would invest 1,741 in Akbank TAS on August 27, 2024 and sell it today you would earn a total of 4,319 from holding Akbank TAS or generate 248.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. Nigbas Nigde Beton
Performance |
| Timeline |
| Akbank TAS |
| Nigbas Nigde Beton |
Akbank TAS and Nigbas Nigde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Nigbas Nigde
The main advantage of trading using opposite Akbank TAS and Nigbas Nigde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Nigbas Nigde 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 Nigbas Nigde will offset losses from the drop in Nigbas Nigde'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 |
| Nigbas Nigde vs. Bms Birlesik Metal | Nigbas Nigde vs. Akbank TAS | Nigbas Nigde vs. Turkiye Kalkinma Bankasi | Nigbas Nigde vs. E Data Teknoloji Pazarlama |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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