Correlation Between Global Menkul and Atlas Menkul

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

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

Diversification Opportunities for Global Menkul and Atlas Menkul

0.8

Correlation Coefficient

Global Menkul  Atlas Menkul

Very poor diversification

The 3 months correlation between Global and Atlas is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Global Menkul Degerler 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 Global Menkul 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 Global Menkul Degerler 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 Global Menkul i.e., Global Menkul and Atlas Menkul go up and down completely randomly.

Pair Corralation between Global Menkul and Atlas Menkul

Assuming the 90 days trading horizon Global Menkul Degerler is expected to generate 0.8 times more return on investment than Atlas Menkul. However, Global Menkul Degerler is 1.24 times less risky than Atlas Menkul. It trades about -0.12 of its potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about -0.18 per unit of risk. If you would invest  1,198  in Global Menkul Degerler on December 28, 2024 and sell it today you would lose (219.00) from holding Global Menkul Degerler or give up 18.28% of portfolio value over 90 days.

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

Global Menkul Degerler  vs.  Atlas Menkul Kiymetler

Global Menkul Degerler

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Menkul Degerler has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent 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.

Atlas Menkul Kiymetler

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlas Menkul Kiymetler has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent 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 Global Menkul and Atlas Menkul

The main advantage of trading using opposite Global Menkul and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Menkul 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 Global Menkul Degerler 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.