Correlation Between Turkiye Kalkinma and Afyon Cimento
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Afyon 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 Turkiye Kalkinma and Afyon Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Afyon Cimento Sanayi, you can compare the effects of market volatilities on Turkiye Kalkinma and Afyon 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 Turkiye Kalkinma with a short position of Afyon Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Afyon Cimento.
Diversification Opportunities for Turkiye Kalkinma and Afyon Cimento
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Afyon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Afyon Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afyon Cimento Sanayi and Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi are associated (or correlated) with Afyon Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afyon Cimento Sanayi has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Afyon Cimento go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Afyon Cimento
Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to under-perform the Afyon Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Kalkinma Bankasi is 2.95 times less risky than Afyon Cimento. The stock trades about -0.02 of its potential returns per unit of risk. The Afyon Cimento Sanayi is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,455 in Afyon Cimento Sanayi on August 25, 2024 and sell it today you would lose (5.00) from holding Afyon Cimento Sanayi or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Afyon Cimento Sanayi
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Afyon Cimento Sanayi |
Turkiye Kalkinma and Afyon Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Afyon Cimento
The main advantage of trading using opposite Turkiye Kalkinma and Afyon Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Afyon 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 Afyon Cimento will offset losses from the drop in Afyon Cimento's long position.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| Afyon Cimento vs. Datagate Bilgisayar Malzemeleri | Afyon Cimento vs. Politeknik Metal Sanayi | Afyon Cimento vs. Qnb Finansbank AS | Afyon Cimento vs. Gentas Genel Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance |