Correlation Between Tekfen Holding and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Alkim Alkali 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 Tekfen Holding and Alkim Alkali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekfen Holding AS and Alkim Alkali Kimya, you can compare the effects of market volatilities on Tekfen Holding and Alkim Alkali 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 Tekfen Holding with a short position of Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Alkim Alkali.
Diversification Opportunities for Tekfen Holding and Alkim Alkali
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tekfen and Alkim is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Alkim Alkali Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Alkali Kimya and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with Alkim Alkali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Alkali Kimya has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Alkim Alkali go up and down completely randomly.
Pair Corralation between Tekfen Holding and Alkim Alkali
Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.24 times more return on investment than Alkim Alkali. However, Tekfen Holding is 1.24 times more volatile than Alkim Alkali Kimya. It trades about -0.03 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about -0.39 per unit of risk. If you would invest 6,485 in Tekfen Holding AS on November 3, 2024 and sell it today you would lose (110.00) from holding Tekfen Holding AS or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekfen Holding AS vs. Alkim Alkali Kimya
Performance |
| Timeline |
| Tekfen Holding AS |
| Alkim Alkali Kimya |
Tekfen Holding and Alkim Alkali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and Alkim Alkali
The main advantage of trading using opposite Tekfen Holding and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, Alkim Alkali 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 Alkim Alkali will offset losses from the drop in Alkim Alkali's long position.| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari Holding |
| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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