Correlation Between Anel Elektrik and Turkiye Garanti

Can any of the company-specific risk be diversified away by investing in both Anel Elektrik and Turkiye Garanti 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 Anel Elektrik and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anel Elektrik Proje and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Anel Elektrik and Turkiye Garanti 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 Anel Elektrik with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anel Elektrik and Turkiye Garanti.

Diversification Opportunities for Anel Elektrik and Turkiye Garanti

-0.01

Correlation Coefficient

Anel Elektrik  Turkiye Garanti

Good diversification

The 3 months correlation between Anel and Turkiye is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Anel Elektrik Proje and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Anel Elektrik 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 Anel Elektrik Proje are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Anel Elektrik i.e., Anel Elektrik and Turkiye Garanti go up and down completely randomly.

Pair Corralation between Anel Elektrik and Turkiye Garanti

Assuming the 90 days trading horizon Anel Elektrik Proje is expected to generate 0.91 times more return on investment than Turkiye Garanti. However, Anel Elektrik Proje is 1.1 times less risky than Turkiye Garanti. It trades about -0.02 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about -0.08 per unit of risk. If you would invest  1,563  in Anel Elektrik Proje on December 23, 2024 and sell it today you would lose (75.00) from holding Anel Elektrik Proje or give up 4.8% of portfolio value over 90 days.

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

Anel Elektrik Proje  vs.  Turkiye Garanti Bankasi

Anel Elektrik Proje

Risk-Adjusted Performance

Very Weak

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

Turkiye Garanti Bankasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Garanti Bankasi 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Anel Elektrik and Turkiye Garanti

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

The idea behind Anel Elektrik Proje and Turkiye Garanti Bankasi 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.