Correlation Between Tekfen Holding and Aksa Akrilik

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

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

Diversification Opportunities for Tekfen Holding and Aksa Akrilik

0.26

Correlation Coefficient

Tekfen Holding  Aksa Akrilik

Modest diversification

The 3 months correlation between Tekfen and Aksa is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS 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 Tekfen Holding 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 Tekfen Holding AS 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 Tekfen Holding i.e., Tekfen Holding and Aksa Akrilik go up and down completely randomly.

Pair Corralation between Tekfen Holding and Aksa Akrilik

Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.27 times more return on investment than Aksa Akrilik. However, Tekfen Holding is 1.27 times more volatile than Aksa Akrilik Kimya. It trades about 0.23 of its potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about 0.13 per unit of risk. If you would invest  5,190  in Tekfen Holding AS on September 12, 2024 and sell it today you would earn a total of  2,640  from holding Tekfen Holding AS or generate 50.87% return on investment over 90 days.

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

Tekfen Holding AS  vs.  Aksa Akrilik Kimya

Tekfen Holding AS

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tekfen Holding AS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Tekfen Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Aksa Akrilik Kimya

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aksa Akrilik Kimya are ranked lower than 10 (%) 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 Tekfen Holding and Aksa Akrilik

The main advantage of trading using opposite Tekfen Holding and Aksa Akrilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding 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 Tekfen Holding AS 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.