Correlation Between AG Anadolu and Kent Gida
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on AG Anadolu and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Kent Gida.
Diversification Opportunities for AG Anadolu and Kent Gida
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGHOL and Kent is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of AG Anadolu i.e., AG Anadolu and Kent Gida go up and down completely randomly.
Pair Corralation between AG Anadolu and Kent Gida
Assuming the 90 days trading horizon AG Anadolu is expected to generate 1.66 times less return on investment than Kent Gida. But when comparing it to its historical volatility, AG Anadolu Group is 1.51 times less risky than Kent Gida. It trades about 0.07 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 91,450 in Kent Gida Maddeleri on September 23, 2024 and sell it today you would earn a total of 13,850 from holding Kent Gida Maddeleri or generate 15.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AG Anadolu Group vs. Kent Gida Maddeleri
Performance |
Timeline |
AG Anadolu Group |
Kent Gida Maddeleri |
AG Anadolu and Kent Gida Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AG Anadolu and Kent Gida
The main advantage of trading using opposite AG Anadolu and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida's 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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