Correlation Between Anatolia Tani and Vakif Menkul

Can any of the company-specific risk be diversified away by investing in both Anatolia Tani and Vakif Menkul 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 Anatolia Tani and Vakif Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anatolia Tani ve and Vakif Menkul Kiymet, you can compare the effects of market volatilities on Anatolia Tani and Vakif Menkul 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 Anatolia Tani with a short position of Vakif Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anatolia Tani and Vakif Menkul.

Diversification Opportunities for Anatolia Tani and Vakif Menkul

-0.67

Correlation Coefficient

Anatolia Tani  Vakif Menkul

Excellent diversification

The 3 months correlation between Anatolia and Vakif is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anatolia Tani ve and Vakif Menkul Kiymet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Menkul Kiymet and Anatolia Tani 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 Anatolia Tani ve are associated (or correlated) with Vakif Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Menkul Kiymet has no effect on the direction of Anatolia Tani i.e., Anatolia Tani and Vakif Menkul go up and down completely randomly.

Pair Corralation between Anatolia Tani and Vakif Menkul

Assuming the 90 days trading horizon Anatolia Tani ve is expected to generate 1.98 times more return on investment than Vakif Menkul. However, Anatolia Tani is 1.98 times more volatile than Vakif Menkul Kiymet. It trades about 0.14 of its potential returns per unit of risk. Vakif Menkul Kiymet is currently generating about -0.07 per unit of risk. If you would invest  1,210  in Anatolia Tani ve on June 21, 2024 and sell it today you would earn a total of  421.00  from holding Anatolia Tani ve or generate 34.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Anatolia Tani ve  vs.  Vakif Menkul Kiymet

Anatolia Tani ve

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anatolia Tani ve are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Anatolia Tani demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Vakif Menkul Kiymet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vakif Menkul Kiymet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in October 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Anatolia Tani and Vakif Menkul

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

The idea behind Anatolia Tani ve and Vakif Menkul Kiymet 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.