Correlation Between AG Anadolu and Is Gayrimenkul

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

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

Diversification Opportunities for AG Anadolu and Is Gayrimenkul

0.42

Correlation Coefficient

AG Anadolu  Is Gayrimenkul

Very weak diversification

The 3 months correlation between AGHOL and ISGYO is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Is Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Gayrimenkul Yatirim and AG Anadolu 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 AG Anadolu Group are associated (or correlated) with Is Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Gayrimenkul Yatirim has no effect on the direction of AG Anadolu i.e., AG Anadolu and Is Gayrimenkul go up and down completely randomly.

Pair Corralation between AG Anadolu and Is Gayrimenkul

Assuming the 90 days trading horizon AG Anadolu Group is expected to under-perform the Is Gayrimenkul. In addition to that, AG Anadolu is 1.26 times more volatile than Is Gayrimenkul Yatirim. It trades about -0.1 of its total potential returns per unit of risk. Is Gayrimenkul Yatirim is currently generating about -0.09 per unit of volatility. If you would invest  1,936  in Is Gayrimenkul Yatirim on December 22, 2024 and sell it today you would lose (296.00) from holding Is Gayrimenkul Yatirim or give up 15.29% of portfolio value over 90 days.

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

AG Anadolu Group  vs.  Is Gayrimenkul Yatirim

AG Anadolu Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days AG Anadolu Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Is Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Is Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with AG Anadolu and Is Gayrimenkul

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

The idea behind AG Anadolu Group and Is Gayrimenkul Yatirim 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.