Correlation Between Turkiye Kalkinma and Anatolia Tani

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

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

Diversification Opportunities for Turkiye Kalkinma and Anatolia Tani

0.46

Correlation Coefficient

Turkiye Kalkinma  Anatolia Tani

Very weak diversification

The 3 months correlation between Turkiye and Anatolia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma 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 Kalkinma Bankasi 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 Turkiye Kalkinma i.e., Turkiye Kalkinma and Anatolia Tani go up and down completely randomly.

Pair Corralation between Turkiye Kalkinma and Anatolia Tani

Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to under-perform the Anatolia Tani. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Kalkinma Bankasi is 1.64 times less risky than Anatolia Tani. The stock trades about -0.1 of its potential returns per unit of risk. The Anatolia Tani ve is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  1,238  in Anatolia Tani ve on December 25, 2024 and sell it today you would lose (156.00) from holding Anatolia Tani ve or give up 12.6% of portfolio value over 90 days.

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

Turkiye Kalkinma Bankasi  vs.  Anatolia Tani ve

Turkiye Kalkinma Bankasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Kalkinma Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

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.

Pair Trading with Turkiye Kalkinma and Anatolia Tani

The main advantage of trading using opposite Turkiye Kalkinma and Anatolia Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.