Correlation Between Aygaz AS and Turk Tuborg
Can any of the company-specific risk be diversified away by investing in both Aygaz AS and Turk Tuborg 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 Aygaz AS and Turk Tuborg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aygaz AS and Turk Tuborg Bira, you can compare the effects of market volatilities on Aygaz AS and Turk Tuborg 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 Aygaz AS with a short position of Turk Tuborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aygaz AS and Turk Tuborg.
Diversification Opportunities for Aygaz AS and Turk Tuborg
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aygaz and Turk is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aygaz AS and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira and Aygaz AS 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 Aygaz AS are associated (or correlated) with Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Aygaz AS i.e., Aygaz AS and Turk Tuborg go up and down completely randomly.
Pair Corralation between Aygaz AS and Turk Tuborg
Assuming the 90 days trading horizon Aygaz AS is expected to generate 0.81 times more return on investment than Turk Tuborg. However, Aygaz AS is 1.24 times less risky than Turk Tuborg. It trades about 0.36 of its potential returns per unit of risk. Turk Tuborg Bira is currently generating about 0.11 per unit of risk. If you would invest 15,390 in Aygaz AS on August 29, 2024 and sell it today you would earn a total of 2,660 from holding Aygaz AS or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aygaz AS vs. Turk Tuborg Bira
Performance |
| Timeline |
| Aygaz AS |
| Turk Tuborg Bira |
Aygaz AS and Turk Tuborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aygaz AS and Turk Tuborg
The main advantage of trading using opposite Aygaz AS and Turk Tuborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aygaz AS position performs unexpectedly, Turk Tuborg 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 Turk Tuborg will offset losses from the drop in Turk Tuborg's long position.| Aygaz AS vs. Turkiye Petrol Rafinerileri | Aygaz AS vs. Aksa Akrilik Kimya | Aygaz AS vs. Arcelik AS | Aygaz AS vs. Tofas Turk Otomobil |
| Turk Tuborg vs. Koza Anadolu Metal | Turk Tuborg vs. Turkiye Kalkinma Bankasi | Turk Tuborg vs. Gentas Genel Metal | Turk Tuborg vs. Akcansa Cimento 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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