Correlation Between Armada Hflr and Vakif Menkul

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Vakif Menkul 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 Armada Hflr and Vakif Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Armada Hflr Pr and Vakif Menkul Kiymet, you can compare the effects of market volatilities on Armada Hflr and Vakif Menkul 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 Armada Hflr with a short position of Vakif Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Vakif Menkul.

Diversification Opportunities for Armada Hflr and Vakif Menkul

0.09

Correlation Coefficient

Armada Hflr  Vakif Menkul

Significant diversification

The 3 months correlation between Armada and Vakif is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Vakif Menkul Kiymet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Menkul Kiymet and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Vakif Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Menkul Kiymet has no effect on the direction of Armada Hflr i.e., Armada Hflr and Vakif Menkul go up and down completely randomly.

Pair Corralation between Armada Hflr and Vakif Menkul

Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.47 times more return on investment than Vakif Menkul. However, Armada Hflr Pr is 2.15 times less risky than Vakif Menkul. It trades about 0.02 of its potential returns per unit of risk. Vakif Menkul Kiymet is currently generating about -0.01 per unit of risk. If you would invest  993.00  in Armada Hflr Pr on September 23, 2024 and sell it today you would earn a total of  32.00  from holding Armada Hflr Pr or generate 3.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.26%
Values	Daily Returns

Armada Hflr Pr  vs.  Vakif Menkul Kiymet

Armada Hflr Pr

Risk-Adjusted Performance

0 of 100

Very Weak

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

Vakif Menkul Kiymet

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Armada Hflr and Vakif Menkul

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

The idea behind Armada Hflr Pr and Vakif Menkul Kiymet 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.