Correlation Between Turkiye Sise and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and AG Anadolu 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 Sise and AG Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and AG Anadolu Group, you can compare the effects of market volatilities on Turkiye Sise and AG Anadolu 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 Sise with a short position of AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and AG Anadolu.
Diversification Opportunities for Turkiye Sise and AG Anadolu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and AGHOL is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and AG Anadolu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Anadolu Group and Turkiye Sise 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 Sise ve are associated (or correlated) with AG Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Anadolu Group has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and AG Anadolu go up and down completely randomly.
Pair Corralation between Turkiye Sise and AG Anadolu
Assuming the 90 days trading horizon Turkiye Sise is expected to generate 1.12 times less return on investment than AG Anadolu. But when comparing it to its historical volatility, Turkiye Sise ve is 1.52 times less risky than AG Anadolu. It trades about 0.19 of its potential returns per unit of risk. AG Anadolu Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 34,000 in AG Anadolu Group on September 24, 2024 and sell it today you would earn a total of 2,275 from holding AG Anadolu Group or generate 6.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Turkiye Sise ve vs. AG Anadolu Group
Performance |
Timeline |
Turkiye Sise ve |
AG Anadolu Group |
Turkiye Sise and AG Anadolu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Sise and AG Anadolu
The main advantage of trading using opposite Turkiye Sise and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, AG Anadolu 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 AG Anadolu will offset losses from the drop in AG Anadolu's long position.Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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