Correlation Between Akcansa Cimento and Akfen Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Akfen Gayrimenkul 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 Akcansa Cimento and Akfen Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and Akfen Gayrimenkul Yatirim, you can compare the effects of market volatilities on Akcansa Cimento and Akfen Gayrimenkul 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 Akcansa Cimento with a short position of Akfen Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Akfen Gayrimenkul.
Diversification Opportunities for Akcansa Cimento and Akfen Gayrimenkul
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akcansa and Akfen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Akfen Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akfen Gayrimenkul Yatirim and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with Akfen Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akfen Gayrimenkul Yatirim has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Akfen Gayrimenkul go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Akfen Gayrimenkul
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.91 times more return on investment than Akfen Gayrimenkul. However, Akcansa Cimento Sanayi is 1.1 times less risky than Akfen Gayrimenkul. It trades about 0.03 of its potential returns per unit of risk. Akfen Gayrimenkul Yatirim is currently generating about 0.01 per unit of risk. If you would invest 15,923 in Akcansa Cimento Sanayi on September 14, 2024 and sell it today you would earn a total of 2,587 from holding Akcansa Cimento Sanayi or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Akfen Gayrimenkul Yatirim
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Akfen Gayrimenkul Yatirim |
Akcansa Cimento and Akfen Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Akfen Gayrimenkul
The main advantage of trading using opposite Akcansa Cimento and Akfen Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Akfen Gayrimenkul 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 Akfen Gayrimenkul will offset losses from the drop in Akfen Gayrimenkul's long position.| Akcansa Cimento vs. Akbank TAS | Akcansa Cimento vs. ICBC Turkey Bank | Akcansa Cimento vs. Creditwest Faktoring AS | Akcansa Cimento vs. Sekerbank TAS |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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