Correlation Between Guler Yatirim and Akcansa Cimento

Can any of the company-specific risk be diversified away by investing in both Guler Yatirim 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 Guler Yatirim and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guler Yatirim Holding and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Guler Yatirim 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 Guler Yatirim with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and Akcansa Cimento.

Diversification Opportunities for Guler Yatirim and Akcansa Cimento

0.77

Correlation Coefficient

Guler Yatirim  Akcansa Cimento

Poor diversification

The 3 months correlation between Guler and Akcansa is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding 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 Guler Yatirim 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 Guler Yatirim Holding 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 Guler Yatirim i.e., Guler Yatirim and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Guler Yatirim and Akcansa Cimento

Assuming the 90 days trading horizon Guler Yatirim is expected to generate 1.63 times less return on investment than Akcansa Cimento. But when comparing it to its historical volatility, Guler Yatirim Holding is 1.22 times less risky than Akcansa Cimento. It trades about 0.06 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  15,420  in Akcansa Cimento Sanayi on September 29, 2024 and sell it today you would earn a total of  1,980  from holding Akcansa Cimento Sanayi or generate 12.84% return on investment over 90 days.

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

Guler Yatirim Holding  vs.  Akcansa Cimento Sanayi

Guler Yatirim Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Guler Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 6 (%) 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.

Pair Trading with Guler Yatirim and Akcansa Cimento

The main advantage of trading using opposite Guler Yatirim and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guler Yatirim 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 Guler Yatirim Holding 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.