Correlation Between Escort Teknoloji and Atlas Menkul

Can any of the company-specific risk be diversified away by investing in both Escort Teknoloji and Atlas Menkul 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 Escort Teknoloji and Atlas Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Escort Teknoloji Yatirim and Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Escort Teknoloji and Atlas Menkul 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 Escort Teknoloji with a short position of Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escort Teknoloji and Atlas Menkul.

Diversification Opportunities for Escort Teknoloji and Atlas Menkul

0.68

Correlation Coefficient

Escort Teknoloji  Atlas Menkul

Poor diversification

The 3 months correlation between Escort and Atlas is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Escort Teknoloji Yatirim and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler and Escort Teknoloji 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 Escort Teknoloji Yatirim are associated (or correlated) with Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Escort Teknoloji i.e., Escort Teknoloji and Atlas Menkul go up and down completely randomly.

Pair Corralation between Escort Teknoloji and Atlas Menkul

Assuming the 90 days trading horizon Escort Teknoloji is expected to generate 3.33 times less return on investment than Atlas Menkul. In addition to that, Escort Teknoloji is 1.08 times more volatile than Atlas Menkul Kiymetler. It trades about 0.07 of its total potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about 0.25 per unit of volatility. If you would invest  490.00  in Atlas Menkul Kiymetler on October 10, 2024 and sell it today you would earn a total of  227.00  from holding Atlas Menkul Kiymetler or generate 46.33% return on investment over 90 days.

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

Escort Teknoloji Yatirim  vs.  Atlas Menkul Kiymetler

Escort Teknoloji Yatirim

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Atlas Menkul Kiymetler

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Menkul Kiymetler are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Atlas Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Escort Teknoloji and Atlas Menkul

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

The idea behind Escort Teknoloji Yatirim and Atlas Menkul Kiymetler 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.