Correlation Between Penguen Gida and Atlas Menkul

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

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

Diversification Opportunities for Penguen Gida and Atlas Menkul

-0.44

Correlation Coefficient

Penguen Gida  Atlas Menkul

Very good diversification

The 3 months correlation between Penguen and Atlas is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi 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 Penguen Gida 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 Penguen Gida Sanayi 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 Penguen Gida i.e., Penguen Gida and Atlas Menkul go up and down completely randomly.

Pair Corralation between Penguen Gida and Atlas Menkul

Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to generate 1.05 times more return on investment than Atlas Menkul. However, Penguen Gida is 1.05 times more volatile than Atlas Menkul Kiymetler. It trades about 0.05 of its potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about -0.17 per unit of risk. If you would invest  676.00  in Penguen Gida Sanayi on December 29, 2024 and sell it today you would earn a total of  46.00  from holding Penguen Gida Sanayi or generate 6.8% return on investment over 90 days.

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

Penguen Gida Sanayi  vs.  Atlas Menkul Kiymetler

Penguen Gida Sanayi

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 Penguen Gida and Atlas Menkul

The main advantage of trading using opposite Penguen Gida and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguen Gida 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 Penguen Gida Sanayi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.