Correlation Between Akbank TAS and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Tofas Turk 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 Akbank TAS and Tofas Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and Tofas Turk Otomobil, you can compare the effects of market volatilities on Akbank TAS and Tofas Turk 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 Akbank TAS with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Tofas Turk.
Diversification Opportunities for Akbank TAS and Tofas Turk
0.73 | Correlation Coefficient |
Poor diversification
The @@bw1eo months correlation between Akbank and Tofas is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and Akbank TAS 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 Akbank TAS are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Akbank TAS i.e., Akbank TAS and Tofas Turk go up and down completely randomly.
Pair Corralation between Akbank TAS and Tofas Turk
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.18 times more return on investment than Tofas Turk. However, Akbank TAS is 1.18 times more volatile than Tofas Turk Otomobil. It trades about 0.18 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about 0.08 per unit of risk. If you would invest 1,601 in Akbank TAS on February 3, 2024 and sell it today you would earn a total of 4,404 from holding Akbank TAS or generate 275.08% return on investment over 90 days.
Time Period | @@bw1EO Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Akbank TAS vs. Tofas Turk Otomobil
Performance |
Timeline |
Akbank TAS |
Tofas Turk Otomobil |
Akbank TAS and Tofas Turk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akbank TAS and Tofas Turk
The main advantage of trading using opposite Akbank TAS and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.Akbank TAS vs. Yesil Yatirim Holding | Akbank TAS vs. Trend Gayrimenkul Yatirim | Akbank TAS vs. Escort Teknoloji Yatirim | Akbank TAS vs. Marmaris Altinyunus Turistik |
Tofas Turk vs. Yesil Yatirim Holding | Tofas Turk vs. Trend Gayrimenkul Yatirim | Tofas Turk vs. Escort Teknoloji Yatirim | Tofas Turk vs. Marmaris Altinyunus Turistik |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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