Correlation Between AG Anadolu and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Escort Teknoloji 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 AG Anadolu and Escort Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Anadolu Group and Escort Teknoloji Yatirim, you can compare the effects of market volatilities on AG Anadolu and Escort Teknoloji 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 AG Anadolu with a short position of Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Escort Teknoloji.
Diversification Opportunities for AG Anadolu and Escort Teknoloji
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Escort is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim and AG Anadolu 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 AG Anadolu Group are associated (or correlated) with Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of AG Anadolu i.e., AG Anadolu and Escort Teknoloji go up and down completely randomly.
Pair Corralation between AG Anadolu and Escort Teknoloji
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 0.81 times more return on investment than Escort Teknoloji. However, AG Anadolu Group is 1.23 times less risky than Escort Teknoloji. It trades about 0.03 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about -0.11 per unit of risk. If you would invest 33,000 in AG Anadolu Group on August 28, 2024 and sell it today you would earn a total of 1,000.00 from holding AG Anadolu Group or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Anadolu Group vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| AG Anadolu Group |
| Escort Teknoloji Yatirim |
AG Anadolu and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Escort Teknoloji
The main advantage of trading using opposite AG Anadolu and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.The idea behind AG Anadolu Group and Escort Teknoloji Yatirim 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.| Escort Teknoloji vs. E Data Teknoloji Pazarlama | Escort Teknoloji vs. ICBC Turkey Bank | Escort Teknoloji vs. Politeknik Metal Sanayi | Escort Teknoloji vs. Sekerbank TAS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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