Correlation Between Cuhadaroglu Metal and Aksu Enerji
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Aksu Enerji 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 Cuhadaroglu Metal and Aksu Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Aksu Enerji ve, you can compare the effects of market volatilities on Cuhadaroglu Metal and Aksu Enerji 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 Cuhadaroglu Metal with a short position of Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Aksu Enerji.
Diversification Opportunities for Cuhadaroglu Metal and Aksu Enerji
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cuhadaroglu and Aksu is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Aksu Enerji go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Aksu Enerji
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to under-perform the Aksu Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Cuhadaroglu Metal Sanayi is 1.09 times less risky than Aksu Enerji. The stock trades about -0.42 of its potential returns per unit of risk. The Aksu Enerji ve is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,144 in Aksu Enerji ve on November 4, 2024 and sell it today you would lose (51.00) from holding Aksu Enerji ve or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Aksu Enerji ve
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Aksu Enerji ve |
Cuhadaroglu Metal and Aksu Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Aksu Enerji
The main advantage of trading using opposite Cuhadaroglu Metal and Aksu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Aksu Enerji 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 Aksu Enerji will offset losses from the drop in Aksu Enerji's long position.| Cuhadaroglu Metal vs. Akbank TAS | Cuhadaroglu Metal vs. Turkiye Garanti Bankasi | Cuhadaroglu Metal vs. Yapi ve Kredi | Cuhadaroglu Metal vs. Turkiye Petrol Rafinerileri |
| Aksu Enerji vs. Koza Anadolu Metal | Aksu Enerji vs. Cuhadaroglu Metal Sanayi | Aksu Enerji vs. CEO Event Medya | Aksu Enerji vs. KOC METALURJI |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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