Correlation Between Brisa Bridgestone and Suwen Tekstil
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Suwen Tekstil 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 Suwen Tekstil 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 Suwen Tekstil Sanayi, you can compare the effects of market volatilities on Brisa Bridgestone and Suwen Tekstil 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 Suwen Tekstil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Suwen Tekstil.
Diversification Opportunities for Brisa Bridgestone and Suwen Tekstil
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brisa and Suwen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Suwen Tekstil Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suwen Tekstil Sanayi 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 Suwen Tekstil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suwen Tekstil Sanayi has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Suwen Tekstil go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Suwen Tekstil
Assuming the 90 days trading horizon Brisa Bridgestone Sabanci is expected to under-perform the Suwen Tekstil. In addition to that, Brisa Bridgestone is 1.01 times more volatile than Suwen Tekstil Sanayi. It trades about -0.03 of its total potential returns per unit of risk. Suwen Tekstil Sanayi is currently generating about 0.03 per unit of volatility. If you would invest 2,828 in Suwen Tekstil Sanayi on September 3, 2024 and sell it today you would earn a total of 164.00 from holding Suwen Tekstil Sanayi or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brisa Bridgestone Sabanci vs. Suwen Tekstil Sanayi
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Suwen Tekstil Sanayi |
Brisa Bridgestone and Suwen Tekstil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Suwen Tekstil
The main advantage of trading using opposite Brisa Bridgestone and Suwen Tekstil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Suwen Tekstil 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 Suwen Tekstil will offset losses from the drop in Suwen Tekstil'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 |
| Suwen Tekstil vs. Dagi Giyim Sanayi | Suwen Tekstil vs. Rodrigo Tekstil Sanayi | Suwen Tekstil vs. Derluks Yatirim Holding | Suwen Tekstil vs. Brisa Bridgestone Sabanci |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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