Correlation Between Turkiye Is and Aselsan Elektronik

Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Aselsan Elektronik 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 Turkiye Is and Aselsan Elektronik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Is Bankasi and Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on Turkiye Is and Aselsan Elektronik 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 Turkiye Is with a short position of Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Aselsan Elektronik.

Diversification Opportunities for Turkiye Is and Aselsan Elektronik

0.66

Correlation Coefficient

Turkiye Is  Aselsan Elektronik

Poor diversification

The 3 months correlation between Turkiye and Aselsan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of Turkiye Is i.e., Turkiye Is and Aselsan Elektronik go up and down completely randomly.

Pair Corralation between Turkiye Is and Aselsan Elektronik

If you would invest  5,490  in Aselsan Elektronik Sanayi on February 1, 2024 and sell it today you would earn a total of  585.00  from holding Aselsan Elektronik Sanayi or generate 10.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	27.78%
Values	Daily Returns

Turkiye Is Bankasi  vs.  Aselsan Elektronik Sanayi

Turkiye Is Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Is Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Turkiye Is is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Aselsan Elektronik Sanayi

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aselsan Elektronik Sanayi are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Aselsan Elektronik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Is and Aselsan Elektronik

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

The idea behind Turkiye Is Bankasi and Aselsan Elektronik 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.