Correlation Between Akbank TAS and Pinar Su
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Pinar Su 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 Pinar Su into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Pinar Su Sanayi, you can compare the effects of market volatilities on Akbank TAS and Pinar Su 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 Pinar Su. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Pinar Su.
Diversification Opportunities for Akbank TAS and Pinar Su
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Pinar is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Pinar Su Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinar Su 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 Pinar Su. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinar Su Sanayi has no effect on the direction of Akbank TAS i.e., Akbank TAS and Pinar Su go up and down completely randomly.
Pair Corralation between Akbank TAS and Pinar Su
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.53 times more return on investment than Pinar Su. However, Akbank TAS is 1.53 times more volatile than Pinar Su Sanayi. It trades about 0.22 of its potential returns per unit of risk. Pinar Su Sanayi is currently generating about 0.03 per unit of risk. If you would invest 4,998 in Akbank TAS on October 25, 2024 and sell it today you would earn a total of 1,962 from holding Akbank TAS or generate 39.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Akbank TAS vs. Pinar Su Sanayi
Performance |
| Timeline |
| Akbank TAS |
| Pinar Su Sanayi |
Akbank TAS and Pinar Su Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and Pinar Su
The main advantage of trading using opposite Akbank TAS and Pinar Su positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Pinar Su 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 Pinar Su will offset losses from the drop in Pinar Su'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 |
| Pinar Su vs. Politeknik Metal Sanayi | Pinar Su vs. Sekerbank TAS | Pinar Su vs. Trabzonspor Sportif Yatirim | Pinar Su vs. KOC METALURJI |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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