Correlation Between Aksa Enerji and Bera Holding

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

By analyzing existing cross correlation between Aksa Enerji Uretim and Bera Holding AS, you can compare the effects of market volatilities on Aksa Enerji and Bera Holding 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 Enerji with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Enerji and Bera Holding.

Diversification Opportunities for Aksa Enerji and Bera Holding

0.71

Correlation Coefficient

Aksa Enerji  Bera Holding

Poor diversification

The 3 months correlation between Aksa and Bera is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Bera Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bera Holding AS and Aksa Enerji 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 Enerji Uretim are associated (or correlated) with Bera Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bera Holding AS has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Bera Holding go up and down completely randomly.

Pair Corralation between Aksa Enerji and Bera Holding

Assuming the 90 days trading horizon Aksa Enerji Uretim is expected to under-perform the Bera Holding. But the stock apears to be less risky and, when comparing its historical volatility, Aksa Enerji Uretim is 1.3 times less risky than Bera Holding. The stock trades about -0.05 of its potential returns per unit of risk. The Bera Holding AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,556  in Bera Holding AS on September 23, 2024 and sell it today you would lose (73.00) from holding Bera Holding AS or give up 4.69% of portfolio value over 90 days.

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

Aksa Enerji Uretim  vs.  Bera Holding AS

Aksa Enerji Uretim

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bera Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bera Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aksa Enerji and Bera Holding

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

The idea behind Aksa Enerji Uretim and Bera Holding AS 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.