Correlation Between AG Anadolu and Penguen Gida

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

Diversification Opportunities for AG Anadolu and Penguen Gida

0.21

Correlation Coefficient

AG Anadolu  Penguen Gida

Modest diversification

The 3 months correlation between AGHOL and Penguen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Penguen Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguen Gida Sanayi 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 Penguen Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguen Gida Sanayi has no effect on the direction of AG Anadolu i.e., AG Anadolu and Penguen Gida go up and down completely randomly.

Pair Corralation between AG Anadolu and Penguen Gida

Assuming the 90 days trading horizon AG Anadolu Group is expected to under-perform the Penguen Gida. But the stock apears to be less risky and, when comparing its historical volatility, AG Anadolu Group is 1.03 times less risky than Penguen Gida. The stock trades about -0.06 of its potential returns per unit of risk. The Penguen Gida Sanayi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  676.00  in Penguen Gida Sanayi on December 29, 2024 and sell it today you would earn a total of  46.00  from holding Penguen Gida Sanayi or generate 6.8% return on investment over 90 days.

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

AG Anadolu Group  vs.  Penguen Gida Sanayi

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 latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Penguen Gida Sanayi

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AG Anadolu and Penguen Gida

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

The idea behind AG Anadolu Group and Penguen Gida 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.