Correlation Between Aksa Akrilik and Hektas Ticaret

Can any of the company-specific risk be diversified away by investing in both Aksa Akrilik and Hektas Ticaret 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 Aksa Akrilik and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aksa Akrilik Kimya and Hektas Ticaret TAS, you can compare the effects of market volatilities on Aksa Akrilik and Hektas Ticaret 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 Aksa Akrilik with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Akrilik and Hektas Ticaret.

Diversification Opportunities for Aksa Akrilik and Hektas Ticaret

0.58

Correlation Coefficient

Aksa Akrilik  Hektas Ticaret

Very weak diversification

The 3 months correlation between Aksa and Hektas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Akrilik Kimya and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Aksa Akrilik 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 Aksa Akrilik Kimya are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Aksa Akrilik i.e., Aksa Akrilik and Hektas Ticaret go up and down completely randomly.

Pair Corralation between Aksa Akrilik and Hektas Ticaret

Assuming the 90 days trading horizon Aksa Akrilik Kimya is expected to generate 5.75 times more return on investment than Hektas Ticaret. However, Aksa Akrilik is 5.75 times more volatile than Hektas Ticaret TAS. It trades about 0.04 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about 0.0 per unit of risk. If you would invest  669.00  in Aksa Akrilik Kimya on September 4, 2024 and sell it today you would earn a total of  320.00  from holding Aksa Akrilik Kimya or generate 47.83% return on investment over 90 days.

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

Aksa Akrilik Kimya  vs.  Hektas Ticaret TAS

Aksa Akrilik Kimya

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Akrilik Kimya are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Aksa Akrilik may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hektas Ticaret TAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hektas Ticaret TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Hektas Ticaret is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Aksa Akrilik and Hektas Ticaret

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

The idea behind Aksa Akrilik Kimya and Hektas Ticaret TAS 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.