Correlation Between Alkim Kagit and Bayrak EBT
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Bayrak EBT 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 Alkim Kagit and Bayrak EBT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Kagit Sanayi and Bayrak EBT Taban, you can compare the effects of market volatilities on Alkim Kagit and Bayrak EBT 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 Alkim Kagit with a short position of Bayrak EBT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Bayrak EBT.
Diversification Opportunities for Alkim Kagit and Bayrak EBT
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and Bayrak is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Bayrak EBT Taban in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayrak EBT Taban and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Bayrak EBT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayrak EBT Taban has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Bayrak EBT go up and down completely randomly.
Pair Corralation between Alkim Kagit and Bayrak EBT
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to under-perform the Bayrak EBT. But the stock apears to be less risky and, when comparing its historical volatility, Alkim Kagit Sanayi is 1.97 times less risky than Bayrak EBT. The stock trades about -0.03 of its potential returns per unit of risk. The Bayrak EBT Taban is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,930 in Bayrak EBT Taban on September 2, 2024 and sell it today you would lose (161.00) from holding Bayrak EBT Taban or give up 8.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Kagit Sanayi vs. Bayrak EBT Taban
Performance |
| Timeline |
| Alkim Kagit Sanayi |
| Bayrak EBT Taban |
Alkim Kagit and Bayrak EBT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Kagit and Bayrak EBT
The main advantage of trading using opposite Alkim Kagit and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Bayrak EBT 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 Bayrak EBT will offset losses from the drop in Bayrak EBT's long position.| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
| Bayrak EBT vs. Akcansa Cimento Sanayi | Bayrak EBT vs. Bms Birlesik Metal | Bayrak EBT vs. MEGA METAL | Bayrak EBT vs. Borlease Otomotiv 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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