Correlation Between Baticim Bati and Ayes Celik
Can any of the company-specific risk be diversified away by investing in both Baticim Bati and Ayes Celik 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 Baticim Bati and Ayes Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baticim Bati Anadolu and Ayes Celik Hasir, you can compare the effects of market volatilities on Baticim Bati and Ayes Celik 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 Baticim Bati with a short position of Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baticim Bati and Ayes Celik.
Diversification Opportunities for Baticim Bati and Ayes Celik
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baticim and Ayes is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Baticim Bati Anadolu and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir and Baticim Bati 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 Baticim Bati Anadolu are associated (or correlated) with Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Baticim Bati i.e., Baticim Bati and Ayes Celik go up and down completely randomly.
Pair Corralation between Baticim Bati and Ayes Celik
Assuming the 90 days trading horizon Baticim Bati Anadolu is expected to generate 1.23 times more return on investment than Ayes Celik. However, Baticim Bati is 1.23 times more volatile than Ayes Celik Hasir. It trades about 0.04 of its potential returns per unit of risk. Ayes Celik Hasir is currently generating about -0.2 per unit of risk. If you would invest 13,750 in Baticim Bati Anadolu on September 13, 2024 and sell it today you would earn a total of 240.00 from holding Baticim Bati Anadolu or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baticim Bati Anadolu vs. Ayes Celik Hasir
Performance |
| Timeline |
| Baticim Bati Anadolu |
| Ayes Celik Hasir |
Baticim Bati and Ayes Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baticim Bati and Ayes Celik
The main advantage of trading using opposite Baticim Bati and Ayes Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baticim Bati position performs unexpectedly, Ayes Celik 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 Ayes Celik will offset losses from the drop in Ayes Celik's long position.| Baticim Bati vs. Bms Birlesik Metal | Baticim Bati vs. MEGA METAL | Baticim Bati vs. ICBC Turkey Bank | Baticim Bati vs. Trabzonspor Sportif Yatirim |
| Ayes Celik vs. ICBC Turkey Bank | Ayes Celik vs. Bms Birlesik Metal | Ayes Celik vs. Koza Anadolu Metal | Ayes Celik vs. Gentas Genel Metal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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