Correlation Between Akbank TAS and Anatolia Tani

Can any of the company-specific risk be diversified away by investing in both Akbank TAS and Anatolia Tani 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 Akbank TAS and Anatolia Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akbank TAS and Anatolia Tani ve, you can compare the effects of market volatilities on Akbank TAS and Anatolia Tani 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 Akbank TAS with a short position of Anatolia Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and Anatolia Tani.

Diversification Opportunities for Akbank TAS and Anatolia Tani

-0.63

Correlation Coefficient

Akbank TAS  Anatolia Tani

Excellent diversification

The 3 months correlation between Akbank and Anatolia is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani ve and Akbank TAS 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 Akbank TAS are associated (or correlated) with Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of Akbank TAS i.e., Akbank TAS and Anatolia Tani go up and down completely randomly.

Pair Corralation between Akbank TAS and Anatolia Tani

Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.03 times more return on investment than Anatolia Tani. However, Akbank TAS is 1.03 times more volatile than Anatolia Tani ve. It trades about 0.11 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about -0.14 per unit of risk. If you would invest  5,565  in Akbank TAS on October 7, 2024 and sell it today you would earn a total of  1,055  from holding Akbank TAS or generate 18.96% return on investment over 90 days.

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

Akbank TAS  vs.  Anatolia Tani ve

Akbank TAS

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akbank TAS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Anatolia Tani ve

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Akbank TAS and Anatolia Tani

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

The idea behind Akbank TAS and Anatolia Tani ve 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 CEOs Directory module to screen CEOs from public companies around the world.