Correlation Between Brisa Bridgestone and Emlak Konut
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Emlak Konut 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 Brisa Bridgestone and Emlak Konut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brisa Bridgestone Sabanci and Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Brisa Bridgestone and Emlak Konut 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 Brisa Bridgestone with a short position of Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Emlak Konut.
Diversification Opportunities for Brisa Bridgestone and Emlak Konut
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brisa and Emlak is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul and Brisa Bridgestone 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 Brisa Bridgestone Sabanci are associated (or correlated) with Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Emlak Konut go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Emlak Konut
Assuming the 90 days trading horizon Brisa Bridgestone Sabanci is expected to generate 0.92 times more return on investment than Emlak Konut. However, Brisa Bridgestone Sabanci is 1.08 times less risky than Emlak Konut. It trades about 0.06 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about 0.05 per unit of risk. If you would invest 4,982 in Brisa Bridgestone Sabanci on August 24, 2024 and sell it today you would earn a total of 4,618 from holding Brisa Bridgestone Sabanci or generate 92.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brisa Bridgestone Sabanci vs. Emlak Konut Gayrimenkul
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Emlak Konut Gayrimenkul |
Brisa Bridgestone and Emlak Konut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Emlak Konut
The main advantage of trading using opposite Brisa Bridgestone and Emlak Konut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Emlak Konut 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 Emlak Konut will offset losses from the drop in Emlak Konut's long position.| Brisa Bridgestone vs. Aksa Akrilik Kimya | Brisa Bridgestone vs. Kordsa Global Endustriyel | Brisa Bridgestone vs. Tofas Turk Otomobil | Brisa Bridgestone vs. Arcelik AS |
| Emlak Konut vs. Brisa Bridgestone Sabanci | Emlak Konut vs. Dogus Gayrimenkul Yatirim | Emlak Konut vs. IZDEMIR Enerji Elektrik | Emlak Konut vs. Margun Enerji Uretim |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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