Correlation Between Eregli Demir and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both Eregli Demir 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 Eregli Demir and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and Aksa Enerji Uretim, you can compare the effects of market volatilities on Eregli Demir 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 Eregli Demir with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Aksa Enerji.
Diversification Opportunities for Eregli Demir and Aksa Enerji
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eregli and Aksa is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve 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 Eregli Demir 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 Eregli Demir ve 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 Eregli Demir i.e., Eregli Demir and Aksa Enerji go up and down completely randomly.
Pair Corralation between Eregli Demir and Aksa Enerji
Assuming the 90 days trading horizon Eregli Demir is expected to generate 1.16 times less return on investment than Aksa Enerji. In addition to that, Eregli Demir is 1.05 times more volatile than Aksa Enerji Uretim. It trades about 0.19 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Aksa Enerji Uretim
Performance |
| Timeline |
| Eregli Demir ve |
| Aksa Enerji Uretim |
Eregli Demir and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Aksa Enerji
The main advantage of trading using opposite Eregli Demir and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir 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.| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
| Aksa Enerji vs. Aksa Akrilik Kimya | Aksa Enerji vs. Turkiye Sise ve | Aksa Enerji vs. Hektas Ticaret TAS | Aksa Enerji vs. SASA Polyester 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |