Correlation Between AG Anadolu and Akenerji Elektrik

Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Akenerji Elektrik 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 AG Anadolu and Akenerji Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AG Anadolu Group and Akenerji Elektrik Uretim, you can compare the effects of market volatilities on AG Anadolu and Akenerji Elektrik 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 AG Anadolu with a short position of Akenerji Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Akenerji Elektrik.

Diversification Opportunities for AG Anadolu and Akenerji Elektrik

0.0

Correlation Coefficient

AG Anadolu  Akenerji Elektrik

Pay attention - limited upside

The 3 months correlation between AGHOL and Akenerji is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Akenerji Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akenerji Elektrik Uretim and AG Anadolu 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 AG Anadolu Group are associated (or correlated) with Akenerji Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akenerji Elektrik Uretim has no effect on the direction of AG Anadolu i.e., AG Anadolu and Akenerji Elektrik go up and down completely randomly.

Pair Corralation between AG Anadolu and Akenerji Elektrik

If you would invest  34,083  in AG Anadolu Group on March 11, 2024 and sell it today you would lose (183.00) from holding AG Anadolu Group or give up 0.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AG Anadolu Group  vs.  Akenerji Elektrik Uretim

AG Anadolu Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AG Anadolu Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, AG Anadolu demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Akenerji Elektrik Uretim

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Akenerji Elektrik Uretim are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Akenerji Elektrik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AG Anadolu and Akenerji Elektrik

The main advantage of trading using opposite AG Anadolu and Akenerji Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Akenerji Elektrik 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 Akenerji Elektrik will offset losses from the drop in Akenerji Elektrik's long position.

The idea behind AG Anadolu Group and Akenerji Elektrik Uretim pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.