Correlation Between Brisa Bridgestone and Yesil Yapi
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Yesil Yapi 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 Yesil Yapi 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 Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Brisa Bridgestone and Yesil Yapi 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 Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Yesil Yapi.
Diversification Opportunities for Brisa Bridgestone and Yesil Yapi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brisa and Yesil is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Yesil Yapi go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Yesil Yapi
Assuming the 90 days trading horizon Brisa Bridgestone is expected to generate 1.59 times less return on investment than Yesil Yapi. But when comparing it to its historical volatility, Brisa Bridgestone Sabanci is 1.3 times less risky than Yesil Yapi. It trades about 0.05 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Yesil Yapi Endustrisi on August 26, 2024 and sell it today you would earn a total of 188.00 from holding Yesil Yapi Endustrisi or generate 63.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brisa Bridgestone Sabanci vs. Yesil Yapi Endustrisi
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Yesil Yapi Endustrisi |
Brisa Bridgestone and Yesil Yapi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Yesil Yapi
The main advantage of trading using opposite Brisa Bridgestone and Yesil Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Yesil Yapi 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 Yesil Yapi will offset losses from the drop in Yesil Yapi's long position.| Brisa Bridgestone vs. Qnb Finansbank AS | Brisa Bridgestone vs. Kent Gida Maddeleri | Brisa Bridgestone vs. QNB Finans Finansal | Brisa Bridgestone vs. Turkiye Kalkinma Bankasi |
| Yesil Yapi vs. QNB Finans Finansal | Yesil Yapi vs. Pamel Yenilenebilir Elektrik | Yesil Yapi vs. Brisa Bridgestone Sabanci | Yesil Yapi vs. Dogus Gayrimenkul Yatirim |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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