Correlation Between SASA Polyester and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Aselsan Elektronik 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 Aselsan Elektronik 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 Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on SASA Polyester and Aselsan Elektronik 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 Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Aselsan Elektronik.
Diversification Opportunities for SASA Polyester and Aselsan Elektronik
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SASA and Aselsan is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi 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 Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of SASA Polyester i.e., SASA Polyester and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between SASA Polyester and Aselsan Elektronik
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Aselsan Elektronik. But the stock apears to be less risky and, when comparing its historical volatility, SASA Polyester Sanayi is 1.16 times less risky than Aselsan Elektronik. The stock trades about -0.16 of its potential returns per unit of risk. The Aselsan Elektronik Sanayi is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 8,585 in Aselsan Elektronik Sanayi on November 28, 2024 and sell it today you would lose (485.00) from holding Aselsan Elektronik Sanayi or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Aselsan Elektronik Sanayi |
SASA Polyester and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Aselsan Elektronik
The main advantage of trading using opposite SASA Polyester and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik'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 |
| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
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.
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