Correlation Between Anadolu Hayat and Anadolu Anonim
Can any of the company-specific risk be diversified away by investing in both Anadolu Hayat and Anadolu Anonim 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 Anadolu Hayat and Anadolu Anonim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadolu Hayat Emeklilik and Anadolu Anonim Turk, you can compare the effects of market volatilities on Anadolu Hayat and Anadolu Anonim 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 Anadolu Hayat with a short position of Anadolu Anonim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Hayat and Anadolu Anonim.
Diversification Opportunities for Anadolu Hayat and Anadolu Anonim
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anadolu and Anadolu is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Hayat Emeklilik and Anadolu Anonim Turk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Anonim Turk and Anadolu Hayat 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 Anadolu Hayat Emeklilik are associated (or correlated) with Anadolu Anonim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Anonim Turk has no effect on the direction of Anadolu Hayat i.e., Anadolu Hayat and Anadolu Anonim go up and down completely randomly.
Pair Corralation between Anadolu Hayat and Anadolu Anonim
Assuming the 90 days trading horizon Anadolu Hayat Emeklilik is expected to generate 1.05 times more return on investment than Anadolu Anonim. However, Anadolu Hayat is 1.05 times more volatile than Anadolu Anonim Turk. It trades about 0.12 of its potential returns per unit of risk. Anadolu Anonim Turk is currently generating about 0.12 per unit of risk. If you would invest 1,824 in Anadolu Hayat Emeklilik on September 4, 2024 and sell it today you would earn a total of 7,836 from holding Anadolu Hayat Emeklilik or generate 429.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anadolu Hayat Emeklilik vs. Anadolu Anonim Turk
Performance |
| Timeline |
| Anadolu Hayat Emeklilik |
| Anadolu Anonim Turk |
Anadolu Hayat and Anadolu Anonim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadolu Hayat and Anadolu Anonim
The main advantage of trading using opposite Anadolu Hayat and Anadolu Anonim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Hayat position performs unexpectedly, Anadolu Anonim 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 Anadolu Anonim will offset losses from the drop in Anadolu Anonim's long position.| Anadolu Hayat vs. Aksa Akrilik Kimya | Anadolu Hayat vs. Tofas Turk Otomobil | Anadolu Hayat vs. AK Sigorta AS | Anadolu Hayat vs. Is Yatirim Menkul |
| Anadolu Anonim vs. Desa Deri Sanayi | Anadolu Anonim vs. Tumosan Motor ve | Anadolu Anonim vs. Ihlas Gazetecilik AS | Anadolu Anonim vs. Kuyas Yatirim AS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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