Correlation Between Anatolia Tani and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Anatolia Tani and Dow Jones 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 Anatolia Tani and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anatolia Tani ve and Dow Jones Industrial, you can compare the effects of market volatilities on Anatolia Tani and Dow Jones 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 Anatolia Tani with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anatolia Tani and Dow Jones.
Diversification Opportunities for Anatolia Tani and Dow Jones
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anatolia and Dow is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Anatolia Tani 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 Anatolia Tani ve are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and Dow Jones go up and down completely randomly.
Pair Corralation between Anatolia Tani and Dow Jones
Assuming the 90 days trading horizon Anatolia Tani ve is expected to under-perform the Dow Jones. In addition to that, Anatolia Tani is 2.3 times more volatile than Dow Jones Industrial. It trades about -0.22 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of volatility. If you would invest 4,429,313 in Dow Jones Industrial on September 12, 2024 and sell it today you would lose (4,530) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Anatolia Tani ve vs. Dow Jones Industrial
Performance |
| Timeline |
Anatolia Tani and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Anatolia Tani ve
Pair trading matchups for Anatolia Tani
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Anatolia Tani and Dow Jones
The main advantage of trading using opposite Anatolia Tani and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anatolia Tani position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Anatolia Tani vs. Silverline Endustri ve | Anatolia Tani vs. CEO Event Medya | Anatolia Tani vs. Borlease Otomotiv AS | Anatolia Tani vs. Cuhadaroglu Metal Sanayi |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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