Correlation Between Dagi Giyim and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both Dagi Giyim and Akbank TAS 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 Dagi Giyim and Akbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagi Giyim Sanayi and Akbank TAS, you can compare the effects of market volatilities on Dagi Giyim and Akbank TAS 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 Dagi Giyim with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagi Giyim and Akbank TAS.
Diversification Opportunities for Dagi Giyim and Akbank TAS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dagi and Akbank is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dagi Giyim Sanayi and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Dagi Giyim 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 Dagi Giyim Sanayi are associated (or correlated) with Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Dagi Giyim i.e., Dagi Giyim and Akbank TAS go up and down completely randomly.
Pair Corralation between Dagi Giyim and Akbank TAS
Assuming the 90 days trading horizon Dagi Giyim Sanayi is expected to generate 1.7 times more return on investment than Akbank TAS. However, Dagi Giyim is 1.7 times more volatile than Akbank TAS. It trades about 0.28 of its potential returns per unit of risk. Akbank TAS is currently generating about -0.07 per unit of risk. If you would invest 1,448 in Dagi Giyim Sanayi on October 10, 2024 and sell it today you would earn a total of 355.00 from holding Dagi Giyim Sanayi or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dagi Giyim Sanayi vs. Akbank TAS
Performance |
| Timeline |
| Dagi Giyim Sanayi |
| Akbank TAS |
Dagi Giyim and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagi Giyim and Akbank TAS
The main advantage of trading using opposite Dagi Giyim and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagi Giyim position performs unexpectedly, Akbank TAS 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| Dagi Giyim vs. Akbank TAS | Dagi Giyim vs. Turkish Airlines | Dagi Giyim vs. Datagate Bilgisayar Malzemeleri | Dagi Giyim vs. Akcansa Cimento Sanayi |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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