Correlation Between Ege Endustri and Anadolu Hayat
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Anadolu Hayat 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 Ege Endustri and Anadolu Hayat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Endustri ve and Anadolu Hayat Emeklilik, you can compare the effects of market volatilities on Ege Endustri and Anadolu Hayat 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 Ege Endustri with a short position of Anadolu Hayat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Anadolu Hayat.
Diversification Opportunities for Ege Endustri and Anadolu Hayat
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ege and Anadolu is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Anadolu Hayat Emeklilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Hayat Emeklilik and Ege Endustri 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 Ege Endustri ve are associated (or correlated) with Anadolu Hayat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Hayat Emeklilik has no effect on the direction of Ege Endustri i.e., Ege Endustri and Anadolu Hayat go up and down completely randomly.
Pair Corralation between Ege Endustri and Anadolu Hayat
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Anadolu Hayat. But the stock apears to be less risky and, when comparing its historical volatility, Ege Endustri ve is 1.21 times less risky than Anadolu Hayat. The stock trades about -0.16 of its potential returns per unit of risk. The Anadolu Hayat Emeklilik is currently generating about -0.06 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Anadolu Hayat Emeklilik
Performance |
| Timeline |
| Ege Endustri ve |
| Anadolu Hayat Emeklilik |
Ege Endustri and Anadolu Hayat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Anadolu Hayat
The main advantage of trading using opposite Ege Endustri and Anadolu Hayat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Anadolu Hayat 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 Hayat will offset losses from the drop in Anadolu Hayat's long position.| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
| Anadolu Hayat vs. Aksa Akrilik Kimya | Anadolu Hayat vs. Tofas Turk Otomobil | Anadolu Hayat vs. AK Sigorta AS | Anadolu Hayat 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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