Correlation Between Vakif Menkul and Atlas Menkul

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

By analyzing existing cross correlation between Vakif Menkul Kiymet and Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Vakif Menkul and Atlas 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 Vakif Menkul with a short position of Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vakif Menkul and Atlas Menkul.

Diversification Opportunities for Vakif Menkul and Atlas Menkul

0.74

Correlation Coefficient

Vakif Menkul  Atlas Menkul

Poor diversification

The 3 months correlation between Vakif and Atlas is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Menkul Kiymet and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler and Vakif Menkul 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 Vakif Menkul Kiymet are associated (or correlated) with Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Vakif Menkul i.e., Vakif Menkul and Atlas Menkul go up and down completely randomly.

Pair Corralation between Vakif Menkul and Atlas Menkul

Assuming the 90 days trading horizon Vakif Menkul is expected to generate 114.03 times less return on investment than Atlas Menkul. In addition to that, Vakif Menkul is 1.02 times more volatile than Atlas Menkul Kiymetler. It trades about 0.0 of its total potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about 0.14 per unit of volatility. If you would invest  544.00  in Atlas Menkul Kiymetler on September 22, 2024 and sell it today you would earn a total of  132.00  from holding Atlas Menkul Kiymetler or generate 24.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Vakif Menkul Kiymet  vs.  Atlas Menkul Kiymetler

Vakif Menkul Kiymet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vakif Menkul Kiymet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Vakif Menkul is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Atlas Menkul Kiymetler

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Menkul Kiymetler are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Atlas Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vakif Menkul and Atlas Menkul

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

The idea behind Vakif Menkul Kiymet and Atlas Menkul Kiymetler 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.