Correlation Between AK Sigorta and Euro Kapital

Can any of the company-specific risk be diversified away by investing in both AK Sigorta and Euro Kapital 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 AK Sigorta and Euro Kapital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AK Sigorta AS and Euro Kapital Yatirim, you can compare the effects of market volatilities on AK Sigorta and Euro Kapital 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 AK Sigorta with a short position of Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AK Sigorta and Euro Kapital.

Diversification Opportunities for AK Sigorta and Euro Kapital

0.65

Correlation Coefficient

AK Sigorta  Euro Kapital

Poor diversification

The 3 months correlation between AKGRT and Euro is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AK Sigorta AS and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim and AK Sigorta 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 AK Sigorta AS are associated (or correlated) with Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of AK Sigorta i.e., AK Sigorta and Euro Kapital go up and down completely randomly.

Pair Corralation between AK Sigorta and Euro Kapital

Assuming the 90 days trading horizon AK Sigorta AS is expected to generate 0.73 times more return on investment than Euro Kapital. However, AK Sigorta AS is 1.38 times less risky than Euro Kapital. It trades about 0.13 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about 0.03 per unit of risk. If you would invest  575.00  in AK Sigorta AS on September 22, 2024 and sell it today you would earn a total of  120.00  from holding AK Sigorta AS or generate 20.87% return on investment over 90 days.

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

AK Sigorta AS  vs.  Euro Kapital Yatirim

AK Sigorta AS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AK Sigorta AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, AK Sigorta demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Euro Kapital Yatirim

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Kapital Yatirim are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Euro Kapital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AK Sigorta and Euro Kapital

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

The idea behind AK Sigorta AS and Euro Kapital Yatirim 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.