Correlation Between Akfen Gayrimenkul and Trabzonspor Sportif
Can any of the company-specific risk be diversified away by investing in both Akfen Gayrimenkul and Trabzonspor Sportif 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 Akfen Gayrimenkul and Trabzonspor Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akfen Gayrimenkul Yatirim and Trabzonspor Sportif Yatirim, you can compare the effects of market volatilities on Akfen Gayrimenkul and Trabzonspor Sportif 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 Akfen Gayrimenkul with a short position of Trabzonspor Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akfen Gayrimenkul and Trabzonspor Sportif.
Diversification Opportunities for Akfen Gayrimenkul and Trabzonspor Sportif
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akfen and Trabzonspor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Akfen Gayrimenkul Yatirim and Trabzonspor Sportif Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzonspor Sportif and Akfen Gayrimenkul 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 Akfen Gayrimenkul Yatirim are associated (or correlated) with Trabzonspor Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzonspor Sportif has no effect on the direction of Akfen Gayrimenkul i.e., Akfen Gayrimenkul and Trabzonspor Sportif go up and down completely randomly.
Pair Corralation between Akfen Gayrimenkul and Trabzonspor Sportif
Assuming the 90 days trading horizon Akfen Gayrimenkul is expected to generate 4.03 times less return on investment than Trabzonspor Sportif. But when comparing it to its historical volatility, Akfen Gayrimenkul Yatirim is 2.23 times less risky than Trabzonspor Sportif. It trades about 0.01 of its potential returns per unit of risk. Trabzonspor Sportif Yatirim is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Trabzonspor Sportif Yatirim on September 3, 2024 and sell it today you would lose (44.00) from holding Trabzonspor Sportif Yatirim or give up 32.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akfen Gayrimenkul Yatirim vs. Trabzonspor Sportif Yatirim
Performance |
| Timeline |
| Akfen Gayrimenkul Yatirim |
| Trabzonspor Sportif |
Akfen Gayrimenkul and Trabzonspor Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akfen Gayrimenkul and Trabzonspor Sportif
The main advantage of trading using opposite Akfen Gayrimenkul and Trabzonspor Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akfen Gayrimenkul position performs unexpectedly, Trabzonspor Sportif 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 Trabzonspor Sportif will offset losses from the drop in Trabzonspor Sportif's long position.| Akfen Gayrimenkul vs. Trabzonspor Sportif Yatirim | Akfen Gayrimenkul vs. Datagate Bilgisayar Malzemeleri | Akfen Gayrimenkul vs. Turkish Airlines | Akfen Gayrimenkul vs. Cuhadaroglu Metal Sanayi |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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