Correlation Between Aselsan Elektronik and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Aselsan Elektronik and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and SASA Polyester.
Diversification Opportunities for Aselsan Elektronik and SASA Polyester
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aselsan and SASA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and SASA Polyester go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and SASA Polyester
Assuming the 90 days trading horizon Aselsan Elektronik Sanayi is expected to generate 0.75 times more return on investment than SASA Polyester. However, Aselsan Elektronik Sanayi is 1.33 times less risky than SASA Polyester. It trades about 0.31 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about 0.1 per unit of risk. If you would invest 6,140 in Aselsan Elektronik Sanayi on August 31, 2024 and sell it today you would earn a total of 875.00 from holding Aselsan Elektronik Sanayi or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| SASA Polyester Sanayi |
Aselsan Elektronik and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and SASA Polyester
The main advantage of trading using opposite Aselsan Elektronik and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester'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 |
| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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