Correlation Between AG Anadolu and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Koza 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 AG Anadolu and Koza Anadolu 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 Koza Anadolu Metal, you can compare the effects of market volatilities on AG Anadolu and Koza 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 AG Anadolu with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Koza Anadolu.
Diversification Opportunities for AG Anadolu and Koza Anadolu
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Koza is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal 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 Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of AG Anadolu i.e., AG Anadolu and Koza Anadolu go up and down completely randomly.
Pair Corralation between AG Anadolu and Koza Anadolu
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 0.92 times more return on investment than Koza Anadolu. However, AG Anadolu Group is 1.09 times less risky than Koza Anadolu. It trades about 0.12 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.05 per unit of risk. If you would invest 10,639 in AG Anadolu Group on September 2, 2024 and sell it today you would earn a total of 21,911 from holding AG Anadolu Group or generate 205.95% 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. Koza Anadolu Metal
Performance |
| Timeline |
| AG Anadolu Group |
| Koza Anadolu Metal |
AG Anadolu and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Koza Anadolu
The main advantage of trading using opposite AG Anadolu and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Koza 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 Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| AG Anadolu vs. Akcansa Cimento Sanayi | AG Anadolu vs. Turkiye Kalkinma Bankasi | AG Anadolu vs. Gentas Genel Metal | AG Anadolu vs. Sekerbank TAS |
| Koza Anadolu vs. Trend Gayrimenkul Yatirim | Koza Anadolu vs. Trabzon Liman Isletmeciligi | Koza Anadolu vs. Halk Gayrimenkul Yatirim | Koza Anadolu vs. Inveo Yatirim Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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