Correlation Between Tofas Turk and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both Tofas Turk 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 Tofas Turk and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Aksa Enerji Uretim, you can compare the effects of market volatilities on Tofas Turk 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 Tofas Turk with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Aksa Enerji.
Diversification Opportunities for Tofas Turk and Aksa Enerji
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tofas and Aksa is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil 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 Tofas Turk 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 Tofas Turk Otomobil 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 Tofas Turk i.e., Tofas Turk and Aksa Enerji go up and down completely randomly.
Pair Corralation between Tofas Turk and Aksa Enerji
Assuming the 90 days trading horizon Tofas Turk is expected to generate 1.33 times less return on investment than Aksa Enerji. In addition to that, Tofas Turk is 1.19 times more volatile than Aksa Enerji Uretim. It trades about 0.14 of its total potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.23 per unit of volatility. If you would invest 3,264 in Aksa Enerji Uretim on September 2, 2024 and sell it today you would earn a total of 292.00 from holding Aksa Enerji Uretim or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Aksa Enerji Uretim
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Aksa Enerji Uretim |
Tofas Turk and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Aksa Enerji
The main advantage of trading using opposite Tofas Turk and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk 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.| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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