Correlation Between Aksa Akrilik and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Aksa Akrilik and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Dow Jones.
Diversification Opportunities for Aksa Akrilik and Dow Jones
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aksa and Dow is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Dow Jones go up and down completely randomly.
Pair Corralation between Aksa Akrilik and Dow Jones
Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 1.84 times more return on investment than Dow Jones. However, Aksa Akrilik is 1.84 times more volatile than Dow Jones Industrial. It trades about 0.3 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of risk. If you would invest 825.00 in Aksa Akrilik Kimya on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Aksa Akrilik Kimya or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aksa Akrilik Kimya vs. Dow Jones Industrial
Performance |
| Timeline |
Aksa Akrilik and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aksa Akrilik Kimya
Pair trading matchups for Aksa Akrilik
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aksa Akrilik and Dow Jones
The main advantage of trading using opposite Aksa Akrilik and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Aksa Akrilik vs. BIM Birlesik Magazalar | Aksa Akrilik vs. Pegasus Hava Tasimaciligi | Aksa Akrilik vs. Turkiye Petrol Rafinerileri | Aksa Akrilik vs. Turkiye Sise ve |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |