Correlation Between Anatolia Tani and E Data

Can any of the company-specific risk be diversified away by investing in both Anatolia Tani and E Data 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 E Data 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 E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Anatolia Tani and E Data 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 E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anatolia Tani and E Data.

Diversification Opportunities for Anatolia Tani and E Data

0.2

Correlation Coefficient

Anatolia Tani  E Data

Modest diversification

The 3 months correlation between Anatolia and EDATA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji 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 E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and E Data go up and down completely randomly.

Pair Corralation between Anatolia Tani and E Data

Assuming the 90 days trading horizon Anatolia Tani ve is expected to generate 1.21 times more return on investment than E Data. However, Anatolia Tani is 1.21 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.07 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.24 per unit of risk. If you would invest  1,332  in Anatolia Tani ve on October 9, 2024 and sell it today you would earn a total of  41.00  from holding Anatolia Tani ve or generate 3.08% return on investment over 90 days.

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

Anatolia Tani ve  vs.  E Data Teknoloji Pazarlama

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 fairly strong forward indicators, Anatolia Tani is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Anatolia Tani and E Data

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

The idea behind Anatolia Tani ve and E Data Teknoloji Pazarlama 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..