Correlation Between Eminis Ambalaj and Aksa Akrilik
Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj 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 Eminis Ambalaj and Aksa Akrilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eminis Ambalaj Sanayi and Aksa Akrilik Kimya, you can compare the effects of market volatilities on Eminis Ambalaj 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 Eminis Ambalaj with a short position of Aksa Akrilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and Aksa Akrilik.
Diversification Opportunities for Eminis Ambalaj and Aksa Akrilik
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eminis and Aksa is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi 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 Eminis Ambalaj i.e., Eminis Ambalaj and Aksa Akrilik go up and down completely randomly.
Pair Corralation between Eminis Ambalaj and Aksa Akrilik
Assuming the 90 days trading horizon Eminis Ambalaj Sanayi is expected to generate 1.52 times more return on investment than Aksa Akrilik. However, Eminis Ambalaj is 1.52 times more volatile than Aksa Akrilik Kimya. It trades about 0.7 of its potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about 0.37 per unit of risk. If you would invest 21,180 in Eminis Ambalaj Sanayi on February 2, 2024 and sell it today you would earn a total of 17,720 from holding Eminis Ambalaj Sanayi or generate 83.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Eminis Ambalaj Sanayi vs. Aksa Akrilik Kimya
Performance |
Timeline |
Eminis Ambalaj Sanayi |
Aksa Akrilik Kimya |
Eminis Ambalaj and Aksa Akrilik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eminis Ambalaj and Aksa Akrilik
The main advantage of trading using opposite Eminis Ambalaj and Aksa Akrilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj 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.Eminis Ambalaj vs. Vestel Elektronik Sanayi | Eminis Ambalaj vs. Creditwest Faktoring AS | Eminis Ambalaj vs. Anatolia Tani ve | Eminis Ambalaj vs. Umpas Holding AS |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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