Correlation Between Brisa Bridgestone and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Halk Gayrimenkul 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 Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Brisa Bridgestone and Halk Gayrimenkul 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Halk Gayrimenkul.
Diversification Opportunities for Brisa Bridgestone and Halk Gayrimenkul
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brisa and Halk is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk Gayrimenkul Yatirim 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Halk Gayrimenkul
Assuming the 90 days trading horizon Brisa Bridgestone is expected to generate 1.01 times less return on investment than Halk Gayrimenkul. In addition to that, Brisa Bridgestone is 1.06 times more volatile than Halk Gayrimenkul Yatirim. It trades about 0.4 of its total potential returns per unit of risk. Halk Gayrimenkul Yatirim is currently generating about 0.42 per unit of volatility. If you would invest 221.00 in Halk Gayrimenkul Yatirim on September 5, 2024 and sell it today you would earn a total of 56.00 from holding Halk Gayrimenkul Yatirim or generate 25.34% 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. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Halk Gayrimenkul Yatirim |
Brisa Bridgestone and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Halk Gayrimenkul
The main advantage of trading using opposite Brisa Bridgestone and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Halk Gayrimenkul 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul's long position.| Brisa Bridgestone vs. Koc Holding AS | Brisa Bridgestone vs. Eregli Demir ve | Brisa Bridgestone vs. Turkiye Sise ve | Brisa Bridgestone vs. Turkcell Iletisim Hizmetleri |
| Halk Gayrimenkul vs. MEGA METAL | Halk Gayrimenkul vs. Turkish Airlines | Halk Gayrimenkul vs. Gentas Genel Metal | Halk Gayrimenkul 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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