Correlation Between Bayrak EBT and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Alkim Kagit 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 Bayrak EBT and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayrak EBT Taban and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Bayrak EBT and Alkim Kagit 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 Bayrak EBT with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Alkim Kagit.
Diversification Opportunities for Bayrak EBT and Alkim Kagit
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bayrak and Alkim is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Bayrak EBT 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 Bayrak EBT Taban are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Alkim Kagit go up and down completely randomly.
Pair Corralation between Bayrak EBT and Alkim Kagit
Assuming the 90 days trading horizon Bayrak EBT Taban is expected to generate 1.97 times more return on investment than Alkim Kagit. However, Bayrak EBT is 1.97 times more volatile than Alkim Kagit Sanayi. It trades about -0.01 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about -0.03 per unit of risk. 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 |
Bayrak EBT Taban vs. Alkim Kagit Sanayi
Performance |
| Timeline |
| Bayrak EBT Taban |
| Alkim Kagit Sanayi |
Bayrak EBT and Alkim Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayrak EBT and Alkim Kagit
The main advantage of trading using opposite Bayrak EBT and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayrak EBT position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.| Bayrak EBT vs. Akcansa Cimento Sanayi | Bayrak EBT vs. Bms Birlesik Metal | Bayrak EBT vs. MEGA METAL | Bayrak EBT vs. Borlease Otomotiv AS |
| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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