Correlation Between AG Anadolu and Kustur Kusadasi
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Kustur Kusadasi 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 Kustur Kusadasi 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 Kustur Kusadasi Turizm, you can compare the effects of market volatilities on AG Anadolu and Kustur Kusadasi 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 Kustur Kusadasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Kustur Kusadasi.
Diversification Opportunities for AG Anadolu and Kustur Kusadasi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Kustur is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Kustur Kusadasi Turizm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kustur Kusadasi Turizm 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 Kustur Kusadasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kustur Kusadasi Turizm has no effect on the direction of AG Anadolu i.e., AG Anadolu and Kustur Kusadasi go up and down completely randomly.
Pair Corralation between AG Anadolu and Kustur Kusadasi
Assuming the 90 days trading horizon AG Anadolu is expected to generate 1.95 times less return on investment than Kustur Kusadasi. But when comparing it to its historical volatility, AG Anadolu Group is 1.88 times less risky than Kustur Kusadasi. It trades about 0.3 of its potential returns per unit of risk. Kustur Kusadasi Turizm is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 260,000 in Kustur Kusadasi Turizm on August 28, 2024 and sell it today you would earn a total of 95,250 from holding Kustur Kusadasi Turizm or generate 36.63% 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. Kustur Kusadasi Turizm
Performance |
| Timeline |
| AG Anadolu Group |
| Kustur Kusadasi Turizm |
AG Anadolu and Kustur Kusadasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Kustur Kusadasi
The main advantage of trading using opposite AG Anadolu and Kustur Kusadasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Kustur Kusadasi 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 Kustur Kusadasi will offset losses from the drop in Kustur Kusadasi's long position.The idea behind AG Anadolu Group and Kustur Kusadasi Turizm 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.| Kustur Kusadasi vs. Politeknik Metal Sanayi | Kustur Kusadasi vs. MEGA METAL | Kustur Kusadasi vs. Mackolik Internet Hizmetleri | Kustur Kusadasi vs. Cuhadaroglu Metal Sanayi |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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