Correlation Between Ayen Enerji and Global Menkul

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

By analyzing existing cross correlation between Ayen Enerji AS and Global Menkul Degerler, you can compare the effects of market volatilities on Ayen Enerji and Global 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 Ayen Enerji with a short position of Global Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayen Enerji and Global Menkul.

Diversification Opportunities for Ayen Enerji and Global Menkul

0.78

Correlation Coefficient

Ayen Enerji  Global Menkul

Poor diversification

The 3 months correlation between Ayen and Global is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ayen Enerji AS and Global Menkul Degerler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Menkul Degerler and Ayen Enerji 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 Ayen Enerji AS are associated (or correlated) with Global Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Menkul Degerler has no effect on the direction of Ayen Enerji i.e., Ayen Enerji and Global Menkul go up and down completely randomly.

Pair Corralation between Ayen Enerji and Global Menkul

Assuming the 90 days trading horizon Ayen Enerji AS is expected to under-perform the Global Menkul. But the stock apears to be less risky and, when comparing its historical volatility, Ayen Enerji AS is 3.01 times less risky than Global Menkul. The stock trades about -0.07 of its potential returns per unit of risk. The Global Menkul Degerler is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,237  in Global Menkul Degerler on September 22, 2024 and sell it today you would earn a total of  39.00  from holding Global Menkul Degerler or generate 3.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Ayen Enerji AS  vs.  Global Menkul Degerler

Ayen Enerji AS

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ayen Enerji AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ayen Enerji is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Global Menkul Degerler

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Menkul Degerler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Global Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ayen Enerji and Global Menkul

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

The idea behind Ayen Enerji AS and Global Menkul Degerler 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.