Correlation Between Birlik Mensucat and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Birlik Mensucat and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on Birlik Mensucat and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birlik Mensucat and Smart Gunes.
Diversification Opportunities for Birlik Mensucat and Smart Gunes
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Birlik and Smart is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Birlik Mensucat Ticaret and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Birlik Mensucat i.e., Birlik Mensucat and Smart Gunes go up and down completely randomly.
Pair Corralation between Birlik Mensucat and Smart Gunes
Assuming the 90 days trading horizon Birlik Mensucat Ticaret is expected to generate 1.8 times more return on investment than Smart Gunes. However, Birlik Mensucat is 1.8 times more volatile than Smart Gunes Enerjisi. It trades about 0.04 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about -0.07 per unit of risk. If you would invest 529.00 in Birlik Mensucat Ticaret on August 26, 2024 and sell it today you would earn a total of 89.00 from holding Birlik Mensucat Ticaret or generate 16.82% 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. Smart Gunes Enerjisi
Performance |
| Timeline |
| Birlik Mensucat Ticaret |
| Smart Gunes Enerjisi |
Birlik Mensucat and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birlik Mensucat and Smart Gunes
The main advantage of trading using opposite Birlik Mensucat and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birlik Mensucat position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' 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 |
| Smart Gunes vs. Turkiye Kalkinma Bankasi | Smart Gunes vs. ICBC Turkey Bank | Smart Gunes vs. Politeknik Metal Sanayi | Smart Gunes 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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