Correlation Between Anatolia Tani and Turkiye Kalkinma

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

Diversification Opportunities for Anatolia Tani and Turkiye Kalkinma

-0.09

Correlation Coefficient

Anatolia Tani  Turkiye Kalkinma

Good diversification

The 3 months correlation between Anatolia and Turkiye is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and Turkiye Kalkinma go up and down completely randomly.

Pair Corralation between Anatolia Tani and Turkiye Kalkinma

Assuming the 90 days trading horizon Anatolia Tani is expected to generate 2.25 times less return on investment than Turkiye Kalkinma. But when comparing it to its historical volatility, Anatolia Tani ve is 1.16 times less risky than Turkiye Kalkinma. It trades about 0.03 of its potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  596.00  in Turkiye Kalkinma Bankasi on October 24, 2024 and sell it today you would earn a total of  758.00  from holding Turkiye Kalkinma Bankasi or generate 127.18% return on investment over 90 days.

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

Anatolia Tani ve  vs.  Turkiye Kalkinma Bankasi

Anatolia Tani ve

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anatolia Tani ve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Turkiye Kalkinma Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Kalkinma Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Anatolia Tani and Turkiye Kalkinma

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

The idea behind Anatolia Tani ve and Turkiye Kalkinma 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.