Correlation Between AG Anadolu and Mavi Giyim
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Mavi Giyim 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 Mavi Giyim 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 Mavi Giyim Sanayi, you can compare the effects of market volatilities on AG Anadolu and Mavi Giyim 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 Mavi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Mavi Giyim.
Diversification Opportunities for AG Anadolu and Mavi Giyim
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Mavi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Mavi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavi Giyim Sanayi 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 Mavi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavi Giyim Sanayi has no effect on the direction of AG Anadolu i.e., AG Anadolu and Mavi Giyim go up and down completely randomly.
Pair Corralation between AG Anadolu and Mavi Giyim
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 1.21 times more return on investment than Mavi Giyim. However, AG Anadolu is 1.21 times more volatile than Mavi Giyim Sanayi. It trades about 0.27 of its potential returns per unit of risk. Mavi Giyim Sanayi is currently generating about 0.14 per unit of risk. If you would invest 28,750 in AG Anadolu Group on August 27, 2024 and sell it today you would earn a total of 4,650 from holding AG Anadolu Group or generate 16.17% 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. Mavi Giyim Sanayi
Performance |
| Timeline |
| AG Anadolu Group |
| Mavi Giyim Sanayi |
AG Anadolu and Mavi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Mavi Giyim
The main advantage of trading using opposite AG Anadolu and Mavi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Mavi Giyim 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 Mavi Giyim will offset losses from the drop in Mavi Giyim's long position.The idea behind AG Anadolu Group and Mavi Giyim Sanayi 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.| Mavi Giyim vs. Qnb Finansbank AS | Mavi Giyim vs. Kent Gida Maddeleri | Mavi Giyim vs. QNB Finans Finansal | Mavi Giyim vs. Turkiye Kalkinma Bankasi |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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