Correlation Between Ege Gubre and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both Ege Gubre and Aksa 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 Ege Gubre and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Gubre Sanayi and Aksa Enerji Uretim, you can compare the effects of market volatilities on Ege Gubre and Aksa 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 Ege Gubre with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Gubre and Aksa Enerji.
Diversification Opportunities for Ege Gubre and Aksa Enerji
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ege and Aksa is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ege Gubre Sanayi and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim and Ege Gubre 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 Ege Gubre Sanayi are associated (or correlated) with Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Ege Gubre i.e., Ege Gubre and Aksa Enerji go up and down completely randomly.
Pair Corralation between Ege Gubre and Aksa Enerji
Assuming the 90 days trading horizon Ege Gubre is expected to generate 14.84 times less return on investment than Aksa Enerji. In addition to that, Ege Gubre is 1.34 times more volatile than Aksa Enerji Uretim. It trades about 0.01 of its total potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.23 per unit of volatility. If you would invest 3,264 in Aksa Enerji Uretim on September 2, 2024 and sell it today you would earn a total of 292.00 from holding Aksa Enerji Uretim or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Gubre Sanayi vs. Aksa Enerji Uretim
Performance |
| Timeline |
| Ege Gubre Sanayi |
| Aksa Enerji Uretim |
Ege Gubre and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Gubre and Aksa Enerji
The main advantage of trading using opposite Ege Gubre and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Gubre position performs unexpectedly, Aksa 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 Aksa Enerji will offset losses from the drop in Aksa Enerji's long position.| Ege Gubre vs. Gentas Genel Metal | Ege Gubre vs. Sekerbank TAS | Ege Gubre vs. Politeknik Metal Sanayi | Ege Gubre vs. MEGA METAL |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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