Correlation Between Dagi Giyim and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Dagi Giyim and Akcansa Cimento 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 Akcansa Cimento 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 Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Dagi Giyim and Akcansa Cimento 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 Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagi Giyim and Akcansa Cimento.
Diversification Opportunities for Dagi Giyim and Akcansa Cimento
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dagi and Akcansa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dagi Giyim Sanayi and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi 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 Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Dagi Giyim i.e., Dagi Giyim and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Dagi Giyim and Akcansa Cimento
Assuming the 90 days trading horizon Dagi Giyim Sanayi is expected to generate 3.91 times more return on investment than Akcansa Cimento. However, Dagi Giyim is 3.91 times more volatile than Akcansa Cimento Sanayi. It trades about 0.09 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.29 per unit of risk. If you would invest 1,491 in Dagi Giyim Sanayi on October 25, 2024 and sell it today you would earn a total of 123.00 from holding Dagi Giyim Sanayi or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dagi Giyim Sanayi vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| Dagi Giyim Sanayi |
| Akcansa Cimento Sanayi |
Dagi Giyim and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagi Giyim and Akcansa Cimento
The main advantage of trading using opposite Dagi Giyim and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagi Giyim position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| Dagi Giyim vs. Akcansa Cimento Sanayi | Dagi Giyim vs. Bms Birlesik Metal | Dagi Giyim vs. Turkish Airlines | Dagi Giyim vs. KOC METALURJI |
| Akcansa Cimento vs. Is Finansal Kiralama | Akcansa Cimento vs. Zorlu Enerji Elektrik | Akcansa Cimento vs. Karsan Otomotiv Sanayi | Akcansa Cimento vs. Eminis Ambalaj 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |