Correlation Between Anel Elektrik and Girisim Elektrik

Can any of the company-specific risk be diversified away by investing in both Anel Elektrik and Girisim Elektrik 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 Girisim Elektrik 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 Girisim Elektrik Taahhut, you can compare the effects of market volatilities on Anel Elektrik and Girisim Elektrik 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 Girisim Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anel Elektrik and Girisim Elektrik.

Diversification Opportunities for Anel Elektrik and Girisim Elektrik

-0.27

Correlation Coefficient

Anel Elektrik  Girisim Elektrik

Very good diversification

The 3 months correlation between Anel and Girisim is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Anel Elektrik Proje and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut 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 Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Anel Elektrik i.e., Anel Elektrik and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Anel Elektrik and Girisim Elektrik

Assuming the 90 days trading horizon Anel Elektrik Proje is expected to under-perform the Girisim Elektrik. But the stock apears to be less risky and, when comparing its historical volatility, Anel Elektrik Proje is 1.29 times less risky than Girisim Elektrik. The stock trades about -0.01 of its potential returns per unit of risk. The Girisim Elektrik Taahhut is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  4,512  in Girisim Elektrik Taahhut on December 24, 2024 and sell it today you would earn a total of  48.00  from holding Girisim Elektrik Taahhut or generate 1.06% return on investment over 90 days.

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

Anel Elektrik Proje  vs.  Girisim Elektrik Taahhut

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.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Girisim Elektrik Taahhut are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Girisim Elektrik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Anel Elektrik and Girisim Elektrik

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

The idea behind Anel Elektrik Proje and Girisim Elektrik Taahhut 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..