Correlation Between Euro Kapital and Aksa Akrilik

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

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

Diversification Opportunities for Euro Kapital and Aksa Akrilik

0.73

Correlation Coefficient

Euro Kapital  Aksa Akrilik

Poor diversification

The 3 months correlation between Euro and Aksa is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Euro Kapital Yatirim and Aksa Akrilik Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Akrilik Kimya and Euro Kapital 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 Euro Kapital Yatirim are associated (or correlated) with Aksa Akrilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Akrilik Kimya has no effect on the direction of Euro Kapital i.e., Euro Kapital and Aksa Akrilik go up and down completely randomly.

Pair Corralation between Euro Kapital and Aksa Akrilik

Assuming the 90 days trading horizon Euro Kapital is expected to generate 4.06 times less return on investment than Aksa Akrilik. In addition to that, Euro Kapital is 1.3 times more volatile than Aksa Akrilik Kimya. It trades about 0.03 of its total potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about 0.17 per unit of volatility. If you would invest  866.00  in Aksa Akrilik Kimya on September 22, 2024 and sell it today you would earn a total of  275.00  from holding Aksa Akrilik Kimya or generate 31.76% return on investment over 90 days.

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

Euro Kapital Yatirim  vs.  Aksa Akrilik Kimya

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.

Aksa Akrilik Kimya

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Akrilik Kimya are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Aksa Akrilik unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Euro Kapital and Aksa Akrilik

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

The idea behind Euro Kapital Yatirim and Aksa Akrilik Kimya 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.