Correlation Between Anatolia Tani and MEGA METAL

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

Diversification Opportunities for Anatolia Tani and MEGA METAL

0.17

Correlation Coefficient

Anatolia Tani  MEGA METAL

Average diversification

The 3 months correlation between Anatolia and MEGA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and MEGA METAL go up and down completely randomly.

Pair Corralation between Anatolia Tani and MEGA METAL

Assuming the 90 days trading horizon Anatolia Tani ve is expected to generate 1.48 times more return on investment than MEGA METAL. However, Anatolia Tani is 1.48 times more volatile than MEGA METAL. It trades about -0.05 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.1 per unit of risk. If you would invest  1,255  in Anatolia Tani ve on December 23, 2024 and sell it today you would lose (178.00) from holding Anatolia Tani ve or give up 14.18% of portfolio value over 90 days.

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

Anatolia Tani ve  vs.  MEGA METAL

Anatolia Tani ve

Risk-Adjusted Performance

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 latest inconsistent 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.

MEGA METAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEGA METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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 Anatolia Tani and MEGA METAL

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

The idea behind Anatolia Tani ve and MEGA METAL 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.