Correlation Between SASA Polyester and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both SASA Polyester 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 SASA Polyester and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and Aksa Enerji Uretim, you can compare the effects of market volatilities on SASA Polyester 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 SASA Polyester with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Aksa Enerji.
Diversification Opportunities for SASA Polyester and Aksa Enerji
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SASA and Aksa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester 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 SASA Polyester 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 SASA Polyester 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 SASA Polyester i.e., SASA Polyester and Aksa Enerji go up and down completely randomly.
Pair Corralation between SASA Polyester and Aksa Enerji
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Aksa Enerji. In addition to that, SASA Polyester is 1.1 times more volatile than Aksa Enerji Uretim. It trades about -0.05 of its total potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.02 per unit of volatility. If you would invest 3,401 in Aksa Enerji Uretim on August 31, 2024 and sell it today you would earn a total of 155.00 from holding Aksa Enerji Uretim or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Aksa Enerji Uretim
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Aksa Enerji Uretim |
SASA Polyester and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Aksa Enerji
The main advantage of trading using opposite SASA Polyester and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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.| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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