Correlation Between Bilici Yatirim and CEO Event
Can any of the company-specific risk be diversified away by investing in both Bilici Yatirim and CEO Event 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 Bilici Yatirim and CEO Event into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilici Yatirim Sanayi and CEO Event Medya, you can compare the effects of market volatilities on Bilici Yatirim and CEO Event 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 Bilici Yatirim with a short position of CEO Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilici Yatirim and CEO Event.
Diversification Opportunities for Bilici Yatirim and CEO Event
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bilici and CEO is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bilici Yatirim Sanayi and CEO Event Medya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Event Medya and Bilici Yatirim 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 Bilici Yatirim Sanayi are associated (or correlated) with CEO Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Event Medya has no effect on the direction of Bilici Yatirim i.e., Bilici Yatirim and CEO Event go up and down completely randomly.
Pair Corralation between Bilici Yatirim and CEO Event
Assuming the 90 days trading horizon Bilici Yatirim Sanayi is expected to generate 1.51 times more return on investment than CEO Event. However, Bilici Yatirim is 1.51 times more volatile than CEO Event Medya. It trades about 0.26 of its potential returns per unit of risk. CEO Event Medya is currently generating about -0.59 per unit of risk. If you would invest 1,516 in Bilici Yatirim Sanayi on October 22, 2024 and sell it today you would earn a total of 157.00 from holding Bilici Yatirim Sanayi or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bilici Yatirim Sanayi vs. CEO Event Medya
Performance |
| Timeline |
| Bilici Yatirim Sanayi |
| CEO Event Medya |
Bilici Yatirim and CEO Event Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilici Yatirim and CEO Event
The main advantage of trading using opposite Bilici Yatirim and CEO Event positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilici Yatirim position performs unexpectedly, CEO Event 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 CEO Event will offset losses from the drop in CEO Event's long position.| Bilici Yatirim vs. BINHO | Bilici Yatirim vs. Tofas Turk Otomobil | Bilici Yatirim vs. Galata Wind Enerji | Bilici Yatirim vs. Peker Gayrimenkul Yatirim |
| CEO Event vs. Prizma Pres Matbaacilik | CEO Event vs. Cuhadaroglu Metal Sanayi | CEO Event vs. Turkiye Vakiflar Bankasi | CEO Event vs. Bilici Yatirim 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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