Correlation Between Baticim Bati and Cimentas Izmir
Can any of the company-specific risk be diversified away by investing in both Baticim Bati and Cimentas Izmir 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 Cimentas Izmir 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 Cimentas Izmir Cimento, you can compare the effects of market volatilities on Baticim Bati and Cimentas Izmir 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 Cimentas Izmir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baticim Bati and Cimentas Izmir.
Diversification Opportunities for Baticim Bati and Cimentas Izmir
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baticim and Cimentas is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Baticim Bati Anadolu and Cimentas Izmir Cimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimentas Izmir Cimento 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 Cimentas Izmir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimentas Izmir Cimento has no effect on the direction of Baticim Bati i.e., Baticim Bati and Cimentas Izmir go up and down completely randomly.
Pair Corralation between Baticim Bati and Cimentas Izmir
Assuming the 90 days trading horizon Baticim Bati Anadolu is expected to under-perform the Cimentas Izmir. In addition to that, Baticim Bati is 1.48 times more volatile than Cimentas Izmir Cimento. It trades about -0.05 of its total potential returns per unit of risk. Cimentas Izmir Cimento is currently generating about 0.19 per unit of volatility. If you would invest 38,000 in Cimentas Izmir Cimento on September 1, 2024 and sell it today you would earn a total of 3,700 from holding Cimentas Izmir Cimento or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baticim Bati Anadolu vs. Cimentas Izmir Cimento
Performance |
| Timeline |
| Baticim Bati Anadolu |
| Cimentas Izmir Cimento |
Baticim Bati and Cimentas Izmir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baticim Bati and Cimentas Izmir
The main advantage of trading using opposite Baticim Bati and Cimentas Izmir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baticim Bati position performs unexpectedly, Cimentas Izmir 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 Cimentas Izmir will offset losses from the drop in Cimentas Izmir's long position.| Baticim Bati vs. Trend Gayrimenkul Yatirim | Baticim Bati vs. Trabzon Liman Isletmeciligi | Baticim Bati vs. Halk Gayrimenkul Yatirim | Baticim Bati vs. Inveo Yatirim Holding |
| Cimentas Izmir vs. Trend Gayrimenkul Yatirim | Cimentas Izmir vs. Trabzon Liman Isletmeciligi | Cimentas Izmir vs. Halk Gayrimenkul Yatirim | Cimentas Izmir vs. Inveo Yatirim Holding |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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