Correlation Between AG Anadolu and Dogu Aras
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Dogu Aras 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 Dogu Aras 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 Dogu Aras Enerji, you can compare the effects of market volatilities on AG Anadolu and Dogu Aras 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 Dogu Aras. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Dogu Aras.
Diversification Opportunities for AG Anadolu and Dogu Aras
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGHOL and Dogu is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Dogu Aras Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogu Aras Enerji 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 Dogu Aras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogu Aras Enerji has no effect on the direction of AG Anadolu i.e., AG Anadolu and Dogu Aras go up and down completely randomly.
Pair Corralation between AG Anadolu and Dogu Aras
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 1.09 times more return on investment than Dogu Aras. However, AG Anadolu is 1.09 times more volatile than Dogu Aras Enerji. It trades about 0.07 of its potential returns per unit of risk. Dogu Aras Enerji is currently generating about -0.07 per unit of risk. If you would invest 33,100 in AG Anadolu Group on September 23, 2024 and sell it today you would earn a total of 3,175 from holding AG Anadolu Group or generate 9.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AG Anadolu Group vs. Dogu Aras Enerji
Performance |
Timeline |
AG Anadolu Group |
Dogu Aras Enerji |
AG Anadolu and Dogu Aras Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AG Anadolu and Dogu Aras
The main advantage of trading using opposite AG Anadolu and Dogu Aras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Dogu Aras 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 Dogu Aras will offset losses from the drop in Dogu Aras' long position.AG Anadolu vs. Coca Cola Icecek AS | AG Anadolu vs. Kristal Kola ve | AG Anadolu vs. Akbank TAS | AG Anadolu vs. Alfas Solar Enerji |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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