Correlation Between AK Sigorta and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both AK Sigorta and Tofas Turk 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 AK Sigorta and Tofas Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AK Sigorta AS and Tofas Turk Otomobil, you can compare the effects of market volatilities on AK Sigorta and Tofas Turk 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 AK Sigorta with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of AK Sigorta and Tofas Turk.
Diversification Opportunities for AK Sigorta and Tofas Turk
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AKGRT and Tofas is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AK Sigorta AS and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and AK Sigorta 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 AK Sigorta AS are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of AK Sigorta i.e., AK Sigorta and Tofas Turk go up and down completely randomly.
Pair Corralation between AK Sigorta and Tofas Turk
Assuming the 90 days trading horizon AK Sigorta AS is expected to generate 1.05 times more return on investment than Tofas Turk. However, AK Sigorta is 1.05 times more volatile than Tofas Turk Otomobil. It trades about -0.04 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about -0.12 per unit of risk. If you would invest 789.00 in AK Sigorta AS on September 3, 2024 and sell it today you would lose (134.00) from holding AK Sigorta AS or give up 16.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AK Sigorta AS vs. Tofas Turk Otomobil
Performance |
| Timeline |
| AK Sigorta AS |
| Tofas Turk Otomobil |
AK Sigorta and Tofas Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AK Sigorta and Tofas Turk
The main advantage of trading using opposite AK Sigorta and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AK Sigorta position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.| AK Sigorta vs. Tofas Turk Otomobil | AK Sigorta vs. Aksa Akrilik Kimya | AK Sigorta vs. Vestel Beyaz Esya | AK Sigorta vs. Is Yatirim Menkul |
| Tofas Turk vs. Koc Holding AS | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Sise ve | Tofas Turk vs. Turkcell Iletisim Hizmetleri |
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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