Correlation Between AG Anadolu and Haci Omer
Can any of the company-specific risk be diversified away by investing in both AG Anadolu and Haci Omer 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 Haci Omer 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 Haci Omer Sabanci, you can compare the effects of market volatilities on AG Anadolu and Haci Omer 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 Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Haci Omer.
Diversification Opportunities for AG Anadolu and Haci Omer
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGHOL and Haci is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci 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 Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of AG Anadolu i.e., AG Anadolu and Haci Omer go up and down completely randomly.
Pair Corralation between AG Anadolu and Haci Omer
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 1.04 times more return on investment than Haci Omer. However, AG Anadolu is 1.04 times more volatile than Haci Omer Sabanci. It trades about 0.53 of its potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.49 per unit of risk. If you would invest 28,775 in AG Anadolu Group on February 13, 2024 and sell it today you would earn a total of 5,600 from holding AG Anadolu Group or generate 19.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AG Anadolu Group vs. Haci Omer Sabanci
Performance |
Timeline |
AG Anadolu Group |
Haci Omer Sabanci |
AG Anadolu and Haci Omer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AG Anadolu and Haci Omer
The main advantage of trading using opposite AG Anadolu and Haci Omer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu position performs unexpectedly, Haci Omer 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 Haci Omer will offset losses from the drop in Haci Omer's long position.The idea behind AG Anadolu Group and Haci Omer Sabanci 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.Haci Omer vs. Turkiye Garanti Bankasi | Haci Omer vs. Yapi ve Kredi | Haci Omer vs. Turkiye Is Bankasi | Haci Omer vs. Koc Holding AS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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