Correlation Between Alkim Kagit and Birikim Varlik
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Birikim Varlik 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 Birikim Varlik 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 Birikim Varlik Yonetim, you can compare the effects of market volatilities on Alkim Kagit and Birikim Varlik 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 Birikim Varlik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Birikim Varlik.
Diversification Opportunities for Alkim Kagit and Birikim Varlik
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alkim and Birikim is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Birikim Varlik Yonetim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birikim Varlik Yonetim 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 Birikim Varlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birikim Varlik Yonetim has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Birikim Varlik go up and down completely randomly.
Pair Corralation between Alkim Kagit and Birikim Varlik
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to under-perform the Birikim Varlik. But the stock apears to be less risky and, when comparing its historical volatility, Alkim Kagit Sanayi is 1.31 times less risky than Birikim Varlik. The stock trades about -0.03 of its potential returns per unit of risk. The Birikim Varlik Yonetim is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,720 in Birikim Varlik Yonetim on September 2, 2024 and sell it today you would earn a total of 355.00 from holding Birikim Varlik Yonetim or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Kagit Sanayi vs. Birikim Varlik Yonetim
Performance |
| Timeline |
| Alkim Kagit Sanayi |
| Birikim Varlik Yonetim |
Alkim Kagit and Birikim Varlik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Kagit and Birikim Varlik
The main advantage of trading using opposite Alkim Kagit and Birikim Varlik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Birikim Varlik 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 Birikim Varlik will offset losses from the drop in Birikim Varlik'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 |
| Birikim Varlik vs. Verusa Holding AS | Birikim Varlik vs. Guler Yatirim Holding | Birikim Varlik vs. Verusaturk Girisim Sermayesi | Birikim Varlik vs. Yesil Yatirim Holding |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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