Correlation Between Dogus Otomotiv and Akcansa Cimento

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv and Akcansa Cimento 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 Dogus Otomotiv and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Otomotiv Servis and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Dogus Otomotiv and Akcansa Cimento 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 Dogus Otomotiv with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Akcansa Cimento.

Diversification Opportunities for Dogus Otomotiv and Akcansa Cimento

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Dogus and Akcansa is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Dogus Otomotiv 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 Dogus Otomotiv Servis are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Dogus Otomotiv and Akcansa Cimento

Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the Akcansa Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 1.44 times less risky than Akcansa Cimento. The stock trades about -0.11 of its potential returns per unit of risk. The Akcansa Cimento Sanayi is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  16,370  in Akcansa Cimento Sanayi on September 28, 2024 and sell it today you would earn a total of  840.00  from holding Akcansa Cimento Sanayi or generate 5.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dogus Otomotiv Servis  vs.  Akcansa Cimento Sanayi

 Performance 
       Timeline  
Dogus Otomotiv Servis 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dogus Otomotiv Servis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Akcansa Cimento Sanayi 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
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 demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Dogus Otomotiv and Akcansa Cimento Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dogus Otomotiv and Akcansa Cimento

The main advantage of trading using opposite Dogus Otomotiv and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.
The idea behind Dogus Otomotiv Servis and Akcansa Cimento Sanayi 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.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Fundamental Analysis
View fundamental data based on most recent published financial statements
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated