Correlation Between IZDEMIR Enerji and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both IZDEMIR Enerji 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 IZDEMIR Enerji and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IZDEMIR Enerji Elektrik and Aksa Enerji Uretim, you can compare the effects of market volatilities on IZDEMIR Enerji 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 IZDEMIR Enerji with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZDEMIR Enerji and Aksa Enerji.
Diversification Opportunities for IZDEMIR Enerji and Aksa Enerji
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between IZDEMIR and Aksa is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding IZDEMIR Enerji Elektrik 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 IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik 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 IZDEMIR Enerji i.e., IZDEMIR Enerji and Aksa Enerji go up and down completely randomly.
Pair Corralation between IZDEMIR Enerji and Aksa Enerji
Assuming the 90 days trading horizon IZDEMIR Enerji Elektrik is expected to under-perform the Aksa Enerji. In addition to that, IZDEMIR Enerji is 1.66 times more volatile than Aksa Enerji Uretim. It trades about -0.15 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IZDEMIR Enerji Elektrik vs. Aksa Enerji Uretim
Performance |
| Timeline |
| IZDEMIR Enerji Elektrik |
| Aksa Enerji Uretim |
IZDEMIR Enerji and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZDEMIR Enerji and Aksa Enerji
The main advantage of trading using opposite IZDEMIR Enerji and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZDEMIR Enerji 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.| IZDEMIR Enerji vs. Cuhadaroglu Metal Sanayi | IZDEMIR Enerji vs. Borlease Otomotiv AS | IZDEMIR Enerji vs. Silverline Endustri ve | IZDEMIR Enerji vs. Galatasaray Sportif Sinai |
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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 Stocks Directory module to find actively traded stocks across global markets.
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