Correlation Between Anatolia Tani and Cemtas Celik

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

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

Diversification Opportunities for Anatolia Tani and Cemtas Celik

-0.71

Correlation Coefficient

Anatolia Tani  Cemtas Celik

Pay attention - limited upside

The 3 months correlation between Anatolia and Cemtas is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Anatolia Tani 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 Anatolia Tani ve are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and Cemtas Celik go up and down completely randomly.

Pair Corralation between Anatolia Tani and Cemtas Celik

Assuming the 90 days trading horizon Anatolia Tani ve is expected to generate 0.89 times more return on investment than Cemtas Celik. However, Anatolia Tani ve is 1.12 times less risky than Cemtas Celik. It trades about -0.01 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about -0.03 per unit of risk. If you would invest  2,520  in Anatolia Tani ve on October 5, 2024 and sell it today you would lose (1,284) from holding Anatolia Tani ve or give up 50.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.79%
Values	Daily Returns

Anatolia Tani ve  vs.  Cemtas Celik Makina

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.

Cemtas Celik Makina

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Cemtas Celik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anatolia Tani and Cemtas Celik

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

The idea behind Anatolia Tani ve and Cemtas Celik Makina 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.