Correlation Between Anadolu Hayat and Mavi Giyim

Can any of the company-specific risk be diversified away by investing in both Anadolu Hayat and Mavi Giyim 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 Mavi Giyim 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 Mavi Giyim Sanayi, you can compare the effects of market volatilities on Anadolu Hayat and Mavi Giyim 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 Mavi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Hayat and Mavi Giyim.

Diversification Opportunities for Anadolu Hayat and Mavi Giyim

0.79

Correlation Coefficient

Anadolu Hayat  Mavi Giyim

Poor diversification

The 3 months correlation between Anadolu and Mavi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Hayat Emeklilik and Mavi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavi Giyim Sanayi 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 Mavi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavi Giyim Sanayi has no effect on the direction of Anadolu Hayat i.e., Anadolu Hayat and Mavi Giyim go up and down completely randomly.

Pair Corralation between Anadolu Hayat and Mavi Giyim

Assuming the 90 days trading horizon Anadolu Hayat Emeklilik is expected to under-perform the Mavi Giyim. In addition to that, Anadolu Hayat is 1.24 times more volatile than Mavi Giyim Sanayi. It trades about -0.06 of its total potential returns per unit of risk. Mavi Giyim Sanayi is currently generating about -0.04 per unit of volatility. If you would invest  9,170  in Mavi Giyim Sanayi on September 22, 2024 and sell it today you would lose (640.00) from holding Mavi Giyim Sanayi or give up 6.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Anadolu Hayat Emeklilik  vs.  Mavi Giyim Sanayi

Anadolu Hayat Emeklilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anadolu Hayat Emeklilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Mavi Giyim Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mavi Giyim Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mavi Giyim is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Anadolu Hayat and Mavi Giyim

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

The idea behind Anadolu Hayat Emeklilik and Mavi Giyim Sanayi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.