Correlation Between Akcansa Cimento and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Akcansa Cimento and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Petrokent Turizm.
Diversification Opportunities for Akcansa Cimento and Petrokent Turizm
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akcansa and Petrokent is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Petrokent Turizm
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 0.56 times more return on investment than Petrokent Turizm. However, Akcansa Cimento Sanayi is 1.8 times less risky than Petrokent Turizm. It trades about 0.23 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.11 per unit of risk. If you would invest 17,640 in Akcansa Cimento Sanayi on October 24, 2024 and sell it today you would earn a total of 1,160 from holding Akcansa Cimento Sanayi or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Petrokent Turizm AS
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Petrokent Turizm |
Akcansa Cimento and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Petrokent Turizm
The main advantage of trading using opposite Akcansa Cimento and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Akcansa Cimento vs. CEO Event Medya | Akcansa Cimento vs. Borlease Otomotiv AS | Akcansa Cimento vs. Trabzonspor Sportif Yatirim | Akcansa Cimento vs. Turkiye Kalkinma Bankasi |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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