Correlation Between Turkiye Is and Anel Elektrik

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

By analyzing existing cross correlation between Turkiye Is Bankasi and Anel Elektrik Proje, you can compare the effects of market volatilities on Turkiye Is and Anel Elektrik 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 Turkiye Is with a short position of Anel Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Anel Elektrik.

Diversification Opportunities for Turkiye Is and Anel Elektrik

0.14

Correlation Coefficient

Turkiye Is  Anel Elektrik

Average diversification

The 3 months correlation between Turkiye and Anel is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Anel Elektrik Proje in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anel Elektrik Proje and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Anel Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anel Elektrik Proje has no effect on the direction of Turkiye Is i.e., Turkiye Is and Anel Elektrik go up and down completely randomly.

Pair Corralation between Turkiye Is and Anel Elektrik

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 0.81 times more return on investment than Anel Elektrik. However, Turkiye Is Bankasi is 1.24 times less risky than Anel Elektrik. It trades about 0.36 of its potential returns per unit of risk. Anel Elektrik Proje is currently generating about -0.16 per unit of risk. If you would invest  1,285  in Turkiye Is Bankasi on October 24, 2024 and sell it today you would earn a total of  177.00  from holding Turkiye Is Bankasi or generate 13.77% return on investment over 90 days.

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

Turkiye Is Bankasi  vs.  Anel Elektrik Proje

Turkiye Is Bankasi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Is Bankasi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Is demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Anel Elektrik Proje

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anel Elektrik Proje has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Anel Elektrik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Is and Anel Elektrik

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

The idea behind Turkiye Is Bankasi and Anel Elektrik Proje 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.

Check out your portfolio center.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.