Correlation Between Anadolu Hayat and Turkiye Is

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

By analyzing existing cross correlation between Anadolu Hayat Emeklilik and Turkiye Is Bankasi, you can compare the effects of market volatilities on Anadolu Hayat and Turkiye Is 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 Anadolu Hayat with a short position of Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Hayat and Turkiye Is.

Diversification Opportunities for Anadolu Hayat and Turkiye Is

0.54

Correlation Coefficient

Anadolu Hayat  Turkiye Is

Very weak diversification

The 3 months correlation between Anadolu and Turkiye is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Hayat Emeklilik and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi and Anadolu Hayat 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 Anadolu Hayat Emeklilik are associated (or correlated) with Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Anadolu Hayat i.e., Anadolu Hayat and Turkiye Is go up and down completely randomly.

Pair Corralation between Anadolu Hayat and Turkiye Is

Assuming the 90 days trading horizon Anadolu Hayat Emeklilik is expected to generate 0.6 times more return on investment than Turkiye Is. However, Anadolu Hayat Emeklilik is 1.66 times less risky than Turkiye Is. It trades about 0.23 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.03 per unit of risk. If you would invest  4,906  in Anadolu Hayat Emeklilik on February 19, 2024 and sell it today you would earn a total of  2,584  from holding Anadolu Hayat Emeklilik or generate 52.67% return on investment over 90 days.

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

Anadolu Hayat Emeklilik  vs.  Turkiye Is Bankasi

Anadolu Hayat Emeklilik

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anadolu Hayat Emeklilik are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Anadolu Hayat demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Is Bankasi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Is Bankasi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Turkiye Is may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Anadolu Hayat and Turkiye Is

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

The idea behind Anadolu Hayat Emeklilik and Turkiye Is Bankasi 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.