Correlation Between Aksa Akrilik and Anadolu Anonim
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Anadolu Anonim 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 Aksa Akrilik and Anadolu Anonim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksa Akrilik Kimya and Anadolu Anonim Turk, you can compare the effects of market volatilities on Aksa Akrilik and Anadolu Anonim 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 Aksa Akrilik with a short position of Anadolu Anonim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Anadolu Anonim.
Diversification Opportunities for Aksa Akrilik and Anadolu Anonim
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aksa and Anadolu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Anadolu Anonim Turk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Anonim Turk and Aksa Akrilik 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 Aksa Akrilik Kimya are associated (or correlated) with Anadolu Anonim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Anonim Turk has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Anadolu Anonim go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Anadolu Anonim
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 0.85 times more return on investment than Anadolu Anonim. However, Aksa Akrilik Kimya is 1.18 times less risky than Anadolu Anonim. It trades about 0.01 of its potential returns per unit of risk. Anadolu Anonim Turk is currently generating about -0.05 per unit of risk. If you would invest 1,006 in Aksa Akrilik Kimya on September 3, 2024 and sell it today you would lose (17.00) from holding Aksa Akrilik Kimya or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aksa Akrilik Kimya vs. Anadolu Anonim Turk
Performance |
| Timeline |
| Aksa Akrilik Kimya |
| Anadolu Anonim Turk |
Aksa Akrilik and Anadolu Anonim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksa Akrilik and Anadolu Anonim
The main advantage of trading using opposite Aksa Akrilik and Anadolu Anonim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Anadolu Anonim 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 Anadolu Anonim will offset losses from the drop in Anadolu Anonim's long position.| Aksa Akrilik vs. Koc Holding AS | Aksa Akrilik vs. Eregli Demir ve | Aksa Akrilik vs. Turkiye Sise ve | Aksa Akrilik vs. Turkcell Iletisim Hizmetleri |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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