Correlation Between Brisa Bridgestone and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Trend 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 Trend 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 Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Brisa Bridgestone and Trend 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 Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Trend Gayrimenkul.
Diversification Opportunities for Brisa Bridgestone and Trend Gayrimenkul
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brisa and Trend is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Trend Gayrimenkul
Assuming the 90 days trading horizon Brisa Bridgestone Sabanci is expected to under-perform the Trend Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Brisa Bridgestone Sabanci is 3.04 times less risky than Trend Gayrimenkul. The stock trades about -0.14 of its potential returns per unit of risk. The Trend Gayrimenkul Yatirim is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,499 in Trend Gayrimenkul Yatirim on November 29, 2024 and sell it today you would earn a total of 194.00 from holding Trend Gayrimenkul Yatirim or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brisa Bridgestone Sabanci vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Trend Gayrimenkul Yatirim |
Brisa Bridgestone and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Trend Gayrimenkul
The main advantage of trading using opposite Brisa Bridgestone and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Trend 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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