Correlation Between Akcansa Cimento and Pergamon Status
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Pergamon Status 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 Pergamon Status 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 Pergamon Status Dis, you can compare the effects of market volatilities on Akcansa Cimento and Pergamon Status 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 Pergamon Status. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Pergamon Status.
Diversification Opportunities for Akcansa Cimento and Pergamon Status
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akcansa and Pergamon is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis 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 Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Pergamon Status go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Pergamon Status
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to under-perform the Pergamon Status. In addition to that, Akcansa Cimento is 2.01 times more volatile than Pergamon Status Dis. It trades about -0.23 of its total potential returns per unit of risk. Pergamon Status Dis is currently generating about -0.12 per unit of volatility. If you would invest 7,775 in Pergamon Status Dis on December 1, 2024 and sell it today you would lose (310.00) from holding Pergamon Status Dis or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Pergamon Status Dis
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Pergamon Status Dis |
Akcansa Cimento and Pergamon Status Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Pergamon Status
The main advantage of trading using opposite Akcansa Cimento and Pergamon Status positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Pergamon Status 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 Pergamon Status will offset losses from the drop in Pergamon Status' long position.| Akcansa Cimento vs. Sekerbank TAS | Akcansa Cimento vs. MEGA METAL | Akcansa Cimento vs. Koza Anadolu Metal | Akcansa Cimento vs. KOC METALURJI |
| Pergamon Status vs. KOC METALURJI | Pergamon Status vs. Gentas Genel Metal | Pergamon Status vs. Trabzonspor Sportif Yatirim | Pergamon Status vs. MEGA METAL |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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