Correlation Between Aselsan Elektronik and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Hektas Ticaret 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 Aselsan Elektronik and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Hektas Ticaret TAS, you can compare the effects of market volatilities on Aselsan Elektronik and Hektas Ticaret 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 Aselsan Elektronik with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Hektas Ticaret.
Diversification Opportunities for Aselsan Elektronik and Hektas Ticaret
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aselsan and Hektas is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Aselsan Elektronik 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 Aselsan Elektronik Sanayi are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Hektas Ticaret
Assuming the 90 days trading horizon Aselsan Elektronik Sanayi is expected to generate 0.63 times more return on investment than Hektas Ticaret. However, Aselsan Elektronik Sanayi is 1.59 times less risky than Hektas Ticaret. It trades about 0.37 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about 0.16 per unit of risk. If you would invest 6,010 in Aselsan Elektronik Sanayi on August 28, 2024 and sell it today you would earn a total of 890.00 from holding Aselsan Elektronik Sanayi or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| Hektas Ticaret TAS |
Aselsan Elektronik and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and Hektas Ticaret
The main advantage of trading using opposite Aselsan Elektronik and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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