Correlation Between Koza Anadolu and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and AG Anadolu 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 Koza Anadolu and AG Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and AG Anadolu Group, you can compare the effects of market volatilities on Koza Anadolu and AG Anadolu 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 Koza Anadolu with a short position of AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and AG Anadolu.
Diversification Opportunities for Koza Anadolu and AG Anadolu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koza and AGHOL is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and AG Anadolu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Anadolu Group and Koza 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 Koza Anadolu Metal are associated (or correlated) with AG Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Anadolu Group has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and AG Anadolu go up and down completely randomly.
Pair Corralation between Koza Anadolu and AG Anadolu
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 3.19 times less return on investment than AG Anadolu. In addition to that, Koza Anadolu is 1.15 times more volatile than AG Anadolu Group. It trades about 0.03 of its total potential returns per unit of risk. AG Anadolu Group is currently generating about 0.1 per unit of volatility. If you would invest 10,987 in AG Anadolu Group on September 23, 2024 and sell it today you would earn a total of 25,288 from holding AG Anadolu Group or generate 230.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Koza Anadolu Metal vs. AG Anadolu Group
Performance |
Timeline |
Koza Anadolu Metal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AG Anadolu Group |
Koza Anadolu and AG Anadolu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koza Anadolu and AG Anadolu
The main advantage of trading using opposite Koza Anadolu and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, AG Anadolu 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 AG Anadolu will offset losses from the drop in AG Anadolu's long position.Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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