Correlation Between Aksa Enerji and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Aksa Enerji and Cuhadaroglu Metal 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 Enerji and Cuhadaroglu Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksa Enerji Uretim and Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Aksa Enerji and Cuhadaroglu Metal 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 Enerji with a short position of Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Enerji and Cuhadaroglu Metal.
Diversification Opportunities for Aksa Enerji and Cuhadaroglu Metal
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aksa and Cuhadaroglu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal Sanayi and Aksa Enerji 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 Enerji Uretim are associated (or correlated) with Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Aksa Enerji and Cuhadaroglu Metal
Assuming the 90 days trading horizon Aksa Enerji is expected to generate 1.92 times less return on investment than Cuhadaroglu Metal. But when comparing it to its historical volatility, Aksa Enerji Uretim is 1.3 times less risky than Cuhadaroglu Metal. It trades about 0.02 of its potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Cuhadaroglu Metal Sanayi on November 2, 2024 and sell it today you would earn a total of 118.00 from holding Cuhadaroglu Metal Sanayi or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aksa Enerji Uretim vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Aksa Enerji Uretim |
| Cuhadaroglu Metal Sanayi |
Aksa Enerji and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksa Enerji and Cuhadaroglu Metal
The main advantage of trading using opposite Aksa Enerji and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Enerji position performs unexpectedly, Cuhadaroglu Metal 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 Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal's long position.| Aksa Enerji vs. Aksa Akrilik Kimya | Aksa Enerji vs. Turkiye Sise ve | Aksa Enerji vs. Hektas Ticaret TAS | Aksa Enerji vs. SASA Polyester Sanayi |
| Cuhadaroglu Metal vs. Bms Birlesik Metal | Cuhadaroglu Metal vs. KOC METALURJI | Cuhadaroglu Metal vs. Gentas Genel Metal | Cuhadaroglu Metal vs. MEGA METAL |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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