Correlation Between Akcansa Cimento and Baticim Bati

Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Baticim Bati 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 Akcansa Cimento and Baticim Bati into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akcansa Cimento Sanayi and Baticim Bati Anadolu, you can compare the effects of market volatilities on Akcansa Cimento and Baticim Bati 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 Akcansa Cimento with a short position of Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Baticim Bati.

Diversification Opportunities for Akcansa Cimento and Baticim Bati

-0.35

Correlation Coefficient

Akcansa Cimento  Baticim Bati

Very good diversification

The 3 months correlation between Akcansa and Baticim is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Baticim Bati go up and down completely randomly.

Pair Corralation between Akcansa Cimento and Baticim Bati

Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 1.06 times more return on investment than Baticim Bati. However, Akcansa Cimento is 1.06 times more volatile than Baticim Bati Anadolu. It trades about 0.06 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about -0.14 per unit of risk. If you would invest  16,030  in Akcansa Cimento Sanayi on September 24, 2024 and sell it today you would earn a total of  1,540  from holding Akcansa Cimento Sanayi or generate 9.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Akcansa Cimento Sanayi  vs.  Baticim Bati Anadolu

Akcansa Cimento Sanayi

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akcansa Cimento may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Baticim Bati Anadolu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baticim Bati Anadolu has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Akcansa Cimento and Baticim Bati

The main advantage of trading using opposite Akcansa Cimento and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.

The idea behind Akcansa Cimento Sanayi and Baticim Bati Anadolu pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.