Correlation Between Anatolia Tani and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Anatolia Tani and MEGA METAL 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 MEGA METAL 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 MEGA METAL, you can compare the effects of market volatilities on Anatolia Tani and MEGA METAL 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 MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anatolia Tani and MEGA METAL.
Diversification Opportunities for Anatolia Tani and MEGA METAL
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anatolia and MEGA is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and MEGA METAL go up and down completely randomly.
Pair Corralation between Anatolia Tani and MEGA METAL
Assuming the 90 days trading horizon Anatolia Tani ve is expected to generate 4.3 times more return on investment than MEGA METAL. However, Anatolia Tani is 4.3 times more volatile than MEGA METAL. It trades about 0.24 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.49 per unit of risk. If you would invest 1,240 in Anatolia Tani ve on October 25, 2024 and sell it today you would earn a total of 260.00 from holding Anatolia Tani ve or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anatolia Tani ve vs. MEGA METAL
Performance |
| Timeline |
| Anatolia Tani ve |
| MEGA METAL |
Anatolia Tani and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anatolia Tani and MEGA METAL
The main advantage of trading using opposite Anatolia Tani and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anatolia Tani position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL's long position.| Anatolia Tani vs. Qnb Finansbank AS | Anatolia Tani vs. Datagate Bilgisayar Malzemeleri | Anatolia Tani vs. E Data Teknoloji Pazarlama | Anatolia Tani vs. Koza Anadolu Metal |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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