Correlation Between Akcansa Cimento and Is Finansal
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Is Finansal 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 Is Finansal 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 Is Finansal Kiralama, you can compare the effects of market volatilities on Akcansa Cimento and Is Finansal 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 Is Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Is Finansal.
Diversification Opportunities for Akcansa Cimento and Is Finansal
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akcansa and ISFIN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Is Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Finansal Kiralama 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 Is Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Finansal Kiralama has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Is Finansal go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Is Finansal
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 1.32 times more return on investment than Is Finansal. However, Akcansa Cimento is 1.32 times more volatile than Is Finansal Kiralama. It trades about 0.39 of its potential returns per unit of risk. Is Finansal Kiralama is currently generating about -0.09 per unit of risk. If you would invest 17,760 in Akcansa Cimento Sanayi on November 4, 2024 and sell it today you would earn a total of 3,060 from holding Akcansa Cimento Sanayi or generate 17.23% 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. Is Finansal Kiralama
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Is Finansal Kiralama |
Akcansa Cimento and Is Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Is Finansal
The main advantage of trading using opposite Akcansa Cimento and Is Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Is Finansal 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 Is Finansal will offset losses from the drop in Is Finansal's long position.| Akcansa Cimento vs. Galatasaray Sportif Sinai | Akcansa Cimento vs. Politeknik Metal Sanayi | Akcansa Cimento vs. Borlease Otomotiv AS | Akcansa Cimento vs. CEO Event Medya |
| Is Finansal vs. Tekfen Holding AS | Is Finansal vs. Turkiye Sinai Kalkinma | Is Finansal vs. Turkiye Is Bankasi |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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