Correlation Between Lider Faktoring and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Lider Faktoring and Akcansa 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 Lider Faktoring and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lider Faktoring AS and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Lider Faktoring and Akcansa 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 Lider Faktoring with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lider Faktoring and Akcansa Cimento.
Diversification Opportunities for Lider Faktoring and Akcansa Cimento
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lider and Akcansa is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lider Faktoring AS and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Lider Faktoring 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 Lider Faktoring AS are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Lider Faktoring i.e., Lider Faktoring and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Lider Faktoring and Akcansa Cimento
Assuming the 90 days trading horizon Lider Faktoring AS is expected to generate 1.16 times more return on investment than Akcansa Cimento. However, Lider Faktoring is 1.16 times more volatile than Akcansa Cimento Sanayi. It trades about 0.08 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.08 per unit of risk. If you would invest 134.00 in Lider Faktoring AS on September 2, 2024 and sell it today you would earn a total of 165.00 from holding Lider Faktoring AS or generate 123.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lider Faktoring AS vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| Lider Faktoring AS |
| Akcansa Cimento Sanayi |
Lider Faktoring and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lider Faktoring and Akcansa Cimento
The main advantage of trading using opposite Lider Faktoring and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lider Faktoring position performs unexpectedly, Akcansa 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| Lider Faktoring vs. Politeknik Metal Sanayi | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Galatasaray Sportif Sinai | Lider Faktoring vs. MEGA METAL |
| Akcansa Cimento vs. Qnb Finansbank AS | Akcansa Cimento vs. Gentas Genel Metal | Akcansa Cimento vs. Sodas Sodyum Sanayi | Akcansa Cimento vs. Koza Anadolu 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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