Correlation Between Akcansa Cimento and Turk Tuborg
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Turk Tuborg 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 Turk Tuborg 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 Turk Tuborg Bira, you can compare the effects of market volatilities on Akcansa Cimento and Turk Tuborg 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 Turk Tuborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Turk Tuborg.
Diversification Opportunities for Akcansa Cimento and Turk Tuborg
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akcansa and Turk is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira 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 Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Turk Tuborg go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Turk Tuborg
Assuming the 90 days trading horizon Akcansa Cimento is expected to generate 2.33 times less return on investment than Turk Tuborg. But when comparing it to its historical volatility, Akcansa Cimento Sanayi is 1.58 times less risky than Turk Tuborg. It trades about 0.08 of its potential returns per unit of risk. Turk Tuborg Bira is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,697 in Turk Tuborg Bira on September 1, 2024 and sell it today you would earn a total of 4,713 from holding Turk Tuborg Bira or generate 54.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Turk Tuborg Bira
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Turk Tuborg Bira |
Akcansa Cimento and Turk Tuborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Turk Tuborg
The main advantage of trading using opposite Akcansa Cimento and Turk Tuborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Turk Tuborg 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 Turk Tuborg will offset losses from the drop in Turk Tuborg's long position.| Akcansa Cimento vs. Trend Gayrimenkul Yatirim | Akcansa Cimento vs. Trabzon Liman Isletmeciligi | Akcansa Cimento vs. Halk Gayrimenkul Yatirim | Akcansa Cimento vs. Inveo Yatirim Holding |
| Turk Tuborg vs. Eregli Demir ve | Turk Tuborg vs. Turkiye Petrol Rafinerileri | Turk Tuborg vs. Turkiye Sise ve | Turk Tuborg vs. Ford Otomotiv Sanayi |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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