Correlation Between Turkiye Sise and Akenerji Elektrik
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Akenerji Elektrik 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 Sise and Akenerji Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Akenerji Elektrik Uretim, you can compare the effects of market volatilities on Turkiye Sise and Akenerji Elektrik 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 Sise with a short position of Akenerji Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Akenerji Elektrik.
Diversification Opportunities for Turkiye Sise and Akenerji Elektrik
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Akenerji is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Akenerji Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akenerji Elektrik Uretim and Turkiye Sise 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 Sise ve are associated (or correlated) with Akenerji Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akenerji Elektrik Uretim has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Akenerji Elektrik go up and down completely randomly.
Pair Corralation between Turkiye Sise and Akenerji Elektrik
Assuming the 90 days trading horizon Turkiye Sise ve is expected to generate 0.53 times more return on investment than Akenerji Elektrik. However, Turkiye Sise ve is 1.9 times less risky than Akenerji Elektrik. It trades about -0.07 of its potential returns per unit of risk. Akenerji Elektrik Uretim is currently generating about -0.05 per unit of risk. If you would invest 4,896 in Turkiye Sise ve on August 31, 2024 and sell it today you would lose (840.00) from holding Turkiye Sise ve or give up 17.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Akenerji Elektrik Uretim
Performance |
| Timeline |
| Turkiye Sise ve |
| Akenerji Elektrik Uretim |
Turkiye Sise and Akenerji Elektrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Akenerji Elektrik
The main advantage of trading using opposite Turkiye Sise and Akenerji Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Akenerji Elektrik 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 Akenerji Elektrik will offset losses from the drop in Akenerji Elektrik's long position.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Akenerji Elektrik vs. Datagate Bilgisayar Malzemeleri | Akenerji Elektrik vs. Politeknik Metal Sanayi | Akenerji Elektrik vs. Cuhadaroglu Metal Sanayi | Akenerji Elektrik vs. Galatasaray Sportif Sinai |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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