Correlation Between Alarko Holding and Turkiye Sise
Can any of the company-specific risk be diversified away by investing in both Alarko Holding and Turkiye Sise 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 Alarko Holding and Turkiye Sise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarko Holding AS and Turkiye Sise ve, you can compare the effects of market volatilities on Alarko Holding and Turkiye Sise 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 Alarko Holding with a short position of Turkiye Sise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Holding and Turkiye Sise.
Diversification Opportunities for Alarko Holding and Turkiye Sise
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alarko and Turkiye is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Holding AS and Turkiye Sise ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sise ve and Alarko Holding 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 Alarko Holding AS are associated (or correlated) with Turkiye Sise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sise ve has no effect on the direction of Alarko Holding i.e., Alarko Holding and Turkiye Sise go up and down completely randomly.
Pair Corralation between Alarko Holding and Turkiye Sise
Assuming the 90 days trading horizon Alarko Holding AS is expected to generate 1.47 times more return on investment than Turkiye Sise. However, Alarko Holding is 1.47 times more volatile than Turkiye Sise ve. It trades about 0.17 of its potential returns per unit of risk. Turkiye Sise ve is currently generating about 0.02 per unit of risk. If you would invest 8,940 in Alarko Holding AS on August 30, 2024 and sell it today you would earn a total of 815.00 from holding Alarko Holding AS or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarko Holding AS vs. Turkiye Sise ve
Performance |
| Timeline |
| Alarko Holding AS |
| Turkiye Sise ve |
Alarko Holding and Turkiye Sise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarko Holding and Turkiye Sise
The main advantage of trading using opposite Alarko Holding and Turkiye Sise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Holding position performs unexpectedly, Turkiye Sise 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 Turkiye Sise will offset losses from the drop in Turkiye Sise's long position.| Alarko Holding vs. Turkiye Sise ve | Alarko Holding vs. Eregli Demir ve | Alarko Holding vs. Aksa Enerji Uretim | Alarko Holding vs. Turkiye Petrol Rafinerileri |
| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |