Correlation Between Aksa Enerji and Eregli Demir
Can any of the company-specific risk be diversified away by investing in both Aksa Enerji and Eregli Demir 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 Eregli Demir 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 Eregli Demir ve, you can compare the effects of market volatilities on Aksa Enerji and Eregli Demir 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 Eregli Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Enerji and Eregli Demir.
Diversification Opportunities for Aksa Enerji and Eregli Demir
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aksa and Eregli is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Eregli Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eregli Demir ve 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 Eregli Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eregli Demir ve has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Eregli Demir go up and down completely randomly.
Pair Corralation between Aksa Enerji and Eregli Demir
Assuming the 90 days trading horizon Aksa Enerji Uretim is expected to generate 1.44 times more return on investment than Eregli Demir. However, Aksa Enerji is 1.44 times more volatile than Eregli Demir ve. It trades about 0.37 of its potential returns per unit of risk. Eregli Demir ve is currently generating about -0.42 per unit of risk. If you would invest 3,542 in Aksa Enerji Uretim on October 24, 2024 and sell it today you would earn a total of 438.00 from holding Aksa Enerji Uretim or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aksa Enerji Uretim vs. Eregli Demir ve
Performance |
| Timeline |
| Aksa Enerji Uretim |
| Eregli Demir ve |
Aksa Enerji and Eregli Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksa Enerji and Eregli Demir
The main advantage of trading using opposite Aksa Enerji and Eregli Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Enerji position performs unexpectedly, Eregli Demir 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 Eregli Demir will offset losses from the drop in Eregli Demir'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 |
| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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