Correlation Between Anadolu Hayat and Trabzon Liman
Can any of the company-specific risk be diversified away by investing in both Anadolu Hayat and Trabzon Liman 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 Trabzon Liman 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 Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Anadolu Hayat and Trabzon Liman 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 Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Hayat and Trabzon Liman.
Diversification Opportunities for Anadolu Hayat and Trabzon Liman
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anadolu and Trabzon is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Hayat Emeklilik and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm 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 Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Anadolu Hayat i.e., Anadolu Hayat and Trabzon Liman go up and down completely randomly.
Pair Corralation between Anadolu Hayat and Trabzon Liman
Assuming the 90 days trading horizon Anadolu Hayat Emeklilik is expected to generate 1.44 times more return on investment than Trabzon Liman. However, Anadolu Hayat is 1.44 times more volatile than Trabzon Liman Isletmeciligi. It trades about -0.06 of its potential returns per unit of risk. Trabzon Liman Isletmeciligi is currently generating about -0.21 per unit of risk. If you would invest 10,310 in Anadolu Hayat Emeklilik on November 4, 2024 and sell it today you would lose (360.00) from holding Anadolu Hayat Emeklilik or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anadolu Hayat Emeklilik vs. Trabzon Liman Isletmeciligi
Performance |
| Timeline |
| Anadolu Hayat Emeklilik |
| Trabzon Liman Isletm |
Anadolu Hayat and Trabzon Liman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadolu Hayat and Trabzon Liman
The main advantage of trading using opposite Anadolu Hayat and Trabzon Liman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Hayat position performs unexpectedly, Trabzon Liman 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 Trabzon Liman will offset losses from the drop in Trabzon Liman'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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