Correlation Between Ihlas Gazetecilik and Anadolu Anonim
Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Anadolu Anonim 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 Ihlas Gazetecilik and Anadolu Anonim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Gazetecilik AS and Anadolu Anonim Turk, you can compare the effects of market volatilities on Ihlas Gazetecilik and Anadolu Anonim 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 Ihlas Gazetecilik with a short position of Anadolu Anonim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Anadolu Anonim.
Diversification Opportunities for Ihlas Gazetecilik and Anadolu Anonim
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ihlas and Anadolu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Anadolu Anonim Turk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Anonim Turk and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS are associated (or correlated) with Anadolu Anonim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Anonim Turk has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Anadolu Anonim go up and down completely randomly.
Pair Corralation between Ihlas Gazetecilik and Anadolu Anonim
Assuming the 90 days trading horizon Ihlas Gazetecilik is expected to generate 3.48 times less return on investment than Anadolu Anonim. In addition to that, Ihlas Gazetecilik is 1.18 times more volatile than Anadolu Anonim Turk. It trades about 0.03 of its total potential returns per unit of risk. Anadolu Anonim Turk is currently generating about 0.12 per unit of volatility. If you would invest 1,713 in Anadolu Anonim Turk on September 4, 2024 and sell it today you would earn a total of 7,472 from holding Anadolu Anonim Turk or generate 436.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Gazetecilik AS vs. Anadolu Anonim Turk
Performance |
| Timeline |
| Ihlas Gazetecilik |
| Anadolu Anonim Turk |
Ihlas Gazetecilik and Anadolu Anonim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Gazetecilik and Anadolu Anonim
The main advantage of trading using opposite Ihlas Gazetecilik and Anadolu Anonim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik position performs unexpectedly, Anadolu Anonim 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 Anonim will offset losses from the drop in Anadolu Anonim's long position.| Ihlas Gazetecilik vs. Borlease Otomotiv AS | Ihlas Gazetecilik vs. MEGA METAL | Ihlas Gazetecilik vs. Cuhadaroglu Metal Sanayi | Ihlas Gazetecilik vs. Bms Birlesik Metal |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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