Correlation Between AG Anadolu and Mackolik Internet

Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Mackolik Internet 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 Mackolik Internet 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 Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on AG Anadolu and Mackolik Internet 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 Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Mackolik Internet.

Diversification Opportunities for AG Anadolu and Mackolik Internet

0.85

Correlation Coefficient

AG Anadolu  Mackolik Internet

Very poor diversification

The 3 months correlation between AGHOL and Mackolik is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet 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 Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of AG Anadolu i.e., AG Anadolu and Mackolik Internet go up and down completely randomly.

Pair Corralation between AG Anadolu and Mackolik Internet

Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 0.81 times more return on investment than Mackolik Internet. However, AG Anadolu Group is 1.23 times less risky than Mackolik Internet. It trades about 0.1 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.08 per unit of risk. If you would invest  8,948  in AG Anadolu Group on October 4, 2024 and sell it today you would earn a total of  22,352  from holding AG Anadolu Group or generate 249.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	97.58%
Values	Daily Returns

AG Anadolu Group  vs.  Mackolik Internet Hizmetleri

AG Anadolu Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AG Anadolu Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, AG Anadolu is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Mackolik Internet

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AG Anadolu and Mackolik Internet

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

The idea behind AG Anadolu Group and Mackolik Internet Hizmetleri 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.