Correlation Between Anadolu Anonim and AK Sigorta
Can any of the company-specific risk be diversified away by investing in both Anadolu Anonim and AK Sigorta 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 Anonim and AK Sigorta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadolu Anonim Turk and AK Sigorta AS, you can compare the effects of market volatilities on Anadolu Anonim and AK Sigorta 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 Anonim with a short position of AK Sigorta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Anonim and AK Sigorta.
Diversification Opportunities for Anadolu Anonim and AK Sigorta
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anadolu and AKGRT is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Anonim Turk and AK Sigorta AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AK Sigorta AS and Anadolu Anonim 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 Anonim Turk are associated (or correlated) with AK Sigorta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AK Sigorta AS has no effect on the direction of Anadolu Anonim i.e., Anadolu Anonim and AK Sigorta go up and down completely randomly.
Pair Corralation between Anadolu Anonim and AK Sigorta
Assuming the 90 days trading horizon Anadolu Anonim Turk is expected to under-perform the AK Sigorta. In addition to that, Anadolu Anonim is 1.1 times more volatile than AK Sigorta AS. It trades about -0.05 of its total potential returns per unit of risk. AK Sigorta AS is currently generating about -0.04 per unit of volatility. If you would invest 789.00 in AK Sigorta AS on September 3, 2024 and sell it today you would lose (134.00) from holding AK Sigorta AS or give up 16.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anadolu Anonim Turk vs. AK Sigorta AS
Performance |
| Timeline |
| Anadolu Anonim Turk |
| AK Sigorta AS |
Anadolu Anonim and AK Sigorta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadolu Anonim and AK Sigorta
The main advantage of trading using opposite Anadolu Anonim and AK Sigorta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Anonim position performs unexpectedly, AK Sigorta 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 AK Sigorta will offset losses from the drop in AK Sigorta's long position.| Anadolu Anonim vs. Desa Deri Sanayi | Anadolu Anonim vs. Tumosan Motor ve | Anadolu Anonim vs. Ihlas Gazetecilik AS | Anadolu Anonim vs. Kuyas Yatirim AS |
| AK Sigorta vs. Tofas Turk Otomobil | AK Sigorta vs. Aksa Akrilik Kimya | AK Sigorta vs. Vestel Beyaz Esya | AK Sigorta vs. Is Yatirim Menkul |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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