Correlation Between DO AG and Anatolia Tani

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

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

Diversification Opportunities for DO AG and Anatolia Tani

-0.29

Correlation Coefficient

DO AG  Anatolia Tani

Very good diversification

The 3 months correlation between DOCO and Anatolia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding DO AG and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani ve and DO AG 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 DO AG are associated (or correlated) with Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of DO AG i.e., DO AG and Anatolia Tani go up and down completely randomly.

Pair Corralation between DO AG and Anatolia Tani

Assuming the 90 days trading horizon DO AG is expected to generate 0.58 times more return on investment than Anatolia Tani. However, DO AG is 1.71 times less risky than Anatolia Tani. It trades about 0.12 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about -0.05 per unit of risk. If you would invest  644,500  in DO AG on December 24, 2024 and sell it today you would earn a total of  102,500  from holding DO AG or generate 15.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

DO AG  vs.  Anatolia Tani ve

DO AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DO AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, DO AG unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 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 DO AG and Anatolia Tani

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

The idea behind DO AG and Anatolia Tani ve 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.