Correlation Between Datagate Bilgisayar and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar and AG Anadolu 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 Datagate Bilgisayar and AG Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datagate Bilgisayar Malzemeleri and AG Anadolu Group, you can compare the effects of market volatilities on Datagate Bilgisayar and AG Anadolu 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 Datagate Bilgisayar with a short position of AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and AG Anadolu.
Diversification Opportunities for Datagate Bilgisayar and AG Anadolu
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Datagate and AGHOL is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler and AG Anadolu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Anadolu Group and Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri are associated (or correlated) with AG Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Anadolu Group has no effect on the direction of Datagate Bilgisayar i.e., Datagate Bilgisayar and AG Anadolu go up and down completely randomly.
Pair Corralation between Datagate Bilgisayar and AG Anadolu
Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.4 times more return on investment than AG Anadolu. However, Datagate Bilgisayar is 1.4 times more volatile than AG Anadolu Group. It trades about 0.03 of its potential returns per unit of risk. AG Anadolu Group is currently generating about -0.02 per unit of risk. If you would invest 4,000 in Datagate Bilgisayar Malzemeleri on September 1, 2024 and sell it today you would earn a total of 152.00 from holding Datagate Bilgisayar Malzemeleri or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Datagate Bilgisayar Malzemeler vs. AG Anadolu Group
Performance |
| Timeline |
| Datagate Bilgisayar |
| AG Anadolu Group |
Datagate Bilgisayar and AG Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datagate Bilgisayar and AG Anadolu
The main advantage of trading using opposite Datagate Bilgisayar and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagate Bilgisayar position performs unexpectedly, AG Anadolu 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 AG Anadolu will offset losses from the drop in AG Anadolu's long position.| Datagate Bilgisayar vs. Akbank TAS | Datagate Bilgisayar vs. Galatasaray Sportif Sinai | Datagate Bilgisayar vs. MEGA METAL | Datagate Bilgisayar vs. Turkish Airlines |
| AG Anadolu vs. Akcansa Cimento Sanayi | AG Anadolu vs. Turkiye Kalkinma Bankasi | AG Anadolu vs. Gentas Genel Metal | AG Anadolu vs. Sekerbank TAS |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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