Correlation Between AG Anadolu and Zorlu Enerji
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Zorlu Enerji 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 Zorlu Enerji 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 Zorlu Enerji Elektrik, you can compare the effects of market volatilities on AG Anadolu and Zorlu Enerji 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 Zorlu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Zorlu Enerji.
Diversification Opportunities for AG Anadolu and Zorlu Enerji
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Zorlu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Zorlu Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zorlu Enerji Elektrik 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 Zorlu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zorlu Enerji Elektrik has no effect on the direction of AG Anadolu i.e., AG Anadolu and Zorlu Enerji go up and down completely randomly.
Pair Corralation between AG Anadolu and Zorlu Enerji
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 1.96 times more return on investment than Zorlu Enerji. However, AG Anadolu is 1.96 times more volatile than Zorlu Enerji Elektrik. It trades about 0.2 of its potential returns per unit of risk. Zorlu Enerji Elektrik is currently generating about 0.13 per unit of risk. If you would invest 32,800 in AG Anadolu Group on September 22, 2024 and sell it today you would earn a total of 3,475 from holding AG Anadolu Group or generate 10.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AG Anadolu Group vs. Zorlu Enerji Elektrik
Performance |
Timeline |
AG Anadolu Group |
Zorlu Enerji Elektrik |
AG Anadolu and Zorlu Enerji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AG Anadolu and Zorlu Enerji
The main advantage of trading using opposite AG Anadolu and Zorlu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Zorlu Enerji 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 Zorlu Enerji will offset losses from the drop in Zorlu Enerji's long position.AG Anadolu vs. Coca Cola Icecek AS | AG Anadolu vs. Kristal Kola ve | AG Anadolu vs. Akbank TAS | AG Anadolu vs. Alfas Solar Enerji |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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