Correlation Between Bilici Yatirim and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Bilici Yatirim and Cuhadaroglu Metal 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 Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Bilici Yatirim and Cuhadaroglu Metal 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 Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilici Yatirim and Cuhadaroglu Metal.
Diversification Opportunities for Bilici Yatirim and Cuhadaroglu Metal
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bilici and Cuhadaroglu is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bilici Yatirim Sanayi and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal Sanayi 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 Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Bilici Yatirim i.e., Bilici Yatirim and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Bilici Yatirim and Cuhadaroglu Metal
Assuming the 90 days trading horizon Bilici Yatirim Sanayi is expected to under-perform the Cuhadaroglu Metal. But the stock apears to be less risky and, when comparing its historical volatility, Bilici Yatirim Sanayi is 1.04 times less risky than Cuhadaroglu Metal. The stock trades about -0.1 of its potential returns per unit of risk. The Cuhadaroglu Metal Sanayi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,104 in Cuhadaroglu Metal Sanayi on November 3, 2024 and sell it today you would earn a total of 248.00 from holding Cuhadaroglu Metal Sanayi or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilici Yatirim Sanayi vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Bilici Yatirim Sanayi |
| Cuhadaroglu Metal Sanayi |
Bilici Yatirim and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilici Yatirim and Cuhadaroglu Metal
The main advantage of trading using opposite Bilici Yatirim and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilici Yatirim position performs unexpectedly, Cuhadaroglu Metal 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 Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal's long position.| Bilici Yatirim vs. Koc Holding AS | Bilici Yatirim vs. Turkish Airlines | Bilici Yatirim vs. Turkiye Garanti Bankasi | Bilici Yatirim vs. Turkiye Petrol Rafinerileri |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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