Correlation Between Birlik Mensucat and Platform Turizm
Can any of the company-specific risk be diversified away by investing in both Birlik Mensucat and Platform Turizm 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 Birlik Mensucat and Platform Turizm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birlik Mensucat Ticaret and Platform Turizm Tasimacilik, you can compare the effects of market volatilities on Birlik Mensucat and Platform Turizm 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 Birlik Mensucat with a short position of Platform Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birlik Mensucat and Platform Turizm.
Diversification Opportunities for Birlik Mensucat and Platform Turizm
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Birlik and Platform is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Birlik Mensucat Ticaret and Platform Turizm Tasimacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platform Turizm Tasi and Birlik Mensucat 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 Birlik Mensucat Ticaret are associated (or correlated) with Platform Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platform Turizm Tasi has no effect on the direction of Birlik Mensucat i.e., Birlik Mensucat and Platform Turizm go up and down completely randomly.
Pair Corralation between Birlik Mensucat and Platform Turizm
Assuming the 90 days trading horizon Birlik Mensucat is expected to generate 1.32 times less return on investment than Platform Turizm. In addition to that, Birlik Mensucat is 1.98 times more volatile than Platform Turizm Tasimacilik. It trades about 0.13 of its total potential returns per unit of risk. Platform Turizm Tasimacilik is currently generating about 0.33 per unit of volatility. If you would invest 2,168 in Platform Turizm Tasimacilik on August 24, 2024 and sell it today you would earn a total of 476.00 from holding Platform Turizm Tasimacilik or generate 21.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Birlik Mensucat Ticaret vs. Platform Turizm Tasimacilik
Performance |
| Timeline |
| Birlik Mensucat Ticaret |
| Platform Turizm Tasi |
Birlik Mensucat and Platform Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birlik Mensucat and Platform Turizm
The main advantage of trading using opposite Birlik Mensucat and Platform Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birlik Mensucat position performs unexpectedly, Platform Turizm 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 Platform Turizm will offset losses from the drop in Platform Turizm's long position.| Birlik Mensucat vs. Qnb Finansbank AS | Birlik Mensucat vs. Kent Gida Maddeleri | Birlik Mensucat vs. QNB Finans Finansal | Birlik Mensucat vs. Turkiye Kalkinma Bankasi |
| Platform Turizm vs. Beyaz Filo Oto | Platform Turizm vs. Vakif Finansal Kiralama | Platform Turizm vs. Brisa Bridgestone Sabanci | Platform Turizm 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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