Correlation Between Eregli Demir and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Eregli Demir 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 Eregli Demir and AG Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and AG Anadolu Group, you can compare the effects of market volatilities on Eregli Demir 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 Eregli Demir with a short position of AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and AG Anadolu.
Diversification Opportunities for Eregli Demir and AG Anadolu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eregli and AGHOL is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve 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 Eregli Demir 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 Eregli Demir ve 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 Eregli Demir i.e., Eregli Demir and AG Anadolu go up and down completely randomly.
Pair Corralation between Eregli Demir and AG Anadolu
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 1.15 times more return on investment than AG Anadolu. However, Eregli Demir is 1.15 times more volatile than AG Anadolu Group. It trades about 0.14 of its potential returns per unit of risk. AG Anadolu Group is currently generating about 0.1 per unit of risk. If you would invest 2,286 in Eregli Demir ve on December 11, 2024 and sell it today you would earn a total of 158.00 from holding Eregli Demir ve or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. AG Anadolu Group
Performance |
| Timeline |
| Eregli Demir ve |
| AG Anadolu Group |
Eregli Demir and AG Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and AG Anadolu
The main advantage of trading using opposite Eregli Demir and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir 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.| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
| AG Anadolu vs. Galatasaray Sportif Sinai | AG Anadolu vs. Bms Birlesik Metal | AG Anadolu vs. Mackolik Internet Hizmetleri | AG Anadolu vs. KOC METALURJI |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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