Correlation Between Aksa Akrilik and Kimteks Poliuretan

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Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Kimteks Poliuretan 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 Kimteks Poliuretan 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 Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Aksa Akrilik and Kimteks Poliuretan 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 Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Kimteks Poliuretan.

Diversification Opportunities for Aksa Akrilik and Kimteks Poliuretan

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Aksa and Kimteks is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan Sanayi 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 Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Kimteks Poliuretan go up and down completely randomly.

Pair Corralation between Aksa Akrilik and Kimteks Poliuretan

Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to under-perform the Kimteks Poliuretan. In addition to that, Aksa Akrilik is 1.73 times more volatile than Kimteks Poliuretan Sanayi. It trades about -0.12 of its total potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.07 per unit of volatility. If you would invest  1,915  in Kimteks Poliuretan Sanayi on October 20, 2024 and sell it today you would lose (51.00) from holding Kimteks Poliuretan Sanayi or give up 2.66% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Aksa Akrilik Kimya  vs.  Kimteks Poliuretan Sanayi

 Performance 
       Timeline  
Aksa Akrilik Kimya 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Akrilik Kimya are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Aksa Akrilik unveiled solid returns over the last few months and may actually be approaching a breakup point.
Kimteks Poliuretan Sanayi 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kimteks Poliuretan Sanayi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kimteks Poliuretan demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Aksa Akrilik and Kimteks Poliuretan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aksa Akrilik and Kimteks Poliuretan

The main advantage of trading using opposite Aksa Akrilik and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Akrilik position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.
The idea behind Aksa Akrilik Kimya and Kimteks Poliuretan Sanayi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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