Correlation Between AG Anadolu and Zorlu Enerji

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AG Anadolu Group  vs.  Zorlu Enerji Elektrik

 Performance 
       Timeline  
AG Anadolu Group 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in AG Anadolu Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, AG Anadolu may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Zorlu Enerji Elektrik 

Risk-Adjusted Performance

0 of 100

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

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.
The idea behind AG Anadolu Group and Zorlu Enerji Elektrik 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device