Correlation Between Bayrak EBT and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Bayrak EBT and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Dow Jones.
Diversification Opportunities for Bayrak EBT and Dow Jones
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bayrak and Dow is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Dow Jones go up and down completely randomly.
Pair Corralation between Bayrak EBT and Dow Jones
Assuming the 90 days trading horizon Bayrak EBT Taban is expected to under-perform the Dow Jones. In addition to that, Bayrak EBT is 6.4 times more volatile than Dow Jones Industrial. It trades about -0.18 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of volatility. If you would invest 3,880,733 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 597,467 from holding Dow Jones Industrial or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Bayrak EBT Taban vs. Dow Jones Industrial
Performance |
| Timeline |
Bayrak EBT and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bayrak EBT Taban
Pair trading matchups for Bayrak EBT
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bayrak EBT and Dow Jones
The main advantage of trading using opposite Bayrak EBT and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayrak EBT position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Bayrak EBT vs. Akbank TAS | Bayrak EBT vs. Politeknik Metal Sanayi | Bayrak EBT vs. Bms Birlesik Metal | Bayrak EBT vs. Qnb Finansbank AS |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |