Correlation Between Trend Gayrimenkul and Aksa Enerji

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

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

Diversification Opportunities for Trend Gayrimenkul and Aksa Enerji

-0.86

Correlation Coefficient

Trend Gayrimenkul  Aksa Enerji

Pay attention - limited upside

The 3 months correlation between Trend and Aksa is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim and Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim are associated (or correlated) with Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and Aksa Enerji go up and down completely randomly.

Pair Corralation between Trend Gayrimenkul and Aksa Enerji

Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 1.78 times more return on investment than Aksa Enerji. However, Trend Gayrimenkul is 1.78 times more volatile than Aksa Enerji Uretim. It trades about 0.11 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about -0.06 per unit of risk. If you would invest  943.00  in Trend Gayrimenkul Yatirim on September 4, 2024 and sell it today you would earn a total of  213.00  from holding Trend Gayrimenkul Yatirim or generate 22.59% return on investment over 90 days.

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

Trend Gayrimenkul Yatirim  vs.  Aksa Enerji Uretim

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trend Gayrimenkul Yatirim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Trend Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Trend Gayrimenkul and Aksa Enerji

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

The idea behind Trend Gayrimenkul Yatirim and Aksa Enerji Uretim 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.