Correlation Between Desa Deri and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both Desa Deri 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 Desa Deri and Akbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desa Deri Sanayi and Akbank TAS, you can compare the effects of market volatilities on Desa Deri 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 Desa Deri with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desa Deri and Akbank TAS.
Diversification Opportunities for Desa Deri and Akbank TAS
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Desa and Akbank is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Desa Deri Sanayi and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Desa Deri 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 Desa Deri 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 Desa Deri i.e., Desa Deri and Akbank TAS go up and down completely randomly.
Pair Corralation between Desa Deri and Akbank TAS
Assuming the 90 days trading horizon Desa Deri is expected to generate 2.47 times less return on investment than Akbank TAS. In addition to that, Desa Deri is 1.03 times more volatile than Akbank TAS. It trades about 0.04 of its total potential returns per unit of risk. Akbank TAS is currently generating about 0.09 per unit of volatility. If you would invest 3,776 in Akbank TAS on September 12, 2024 and sell it today you would earn a total of 2,739 from holding Akbank TAS or generate 72.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desa Deri Sanayi vs. Akbank TAS
Performance |
| Timeline |
| Desa Deri Sanayi |
| Akbank TAS |
Desa Deri and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desa Deri and Akbank TAS
The main advantage of trading using opposite Desa Deri and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desa Deri 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.| Desa Deri vs. QNB Finans Finansal | Desa Deri vs. Pamel Yenilenebilir Elektrik | Desa Deri vs. IZDEMIR Enerji Elektrik | Desa Deri vs. Logo Yazilim 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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