Correlation Between Baticim Bati and Oyak Cimento
Can any of the company-specific risk be diversified away by investing in both Baticim Bati and Oyak Cimento 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 Oyak Cimento 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 Oyak Cimento Fabrikalari, you can compare the effects of market volatilities on Baticim Bati and Oyak Cimento 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 Oyak Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baticim Bati and Oyak Cimento.
Diversification Opportunities for Baticim Bati and Oyak Cimento
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baticim and Oyak is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Baticim Bati Anadolu and Oyak Cimento Fabrikalari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oyak Cimento Fabrikalari 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 Oyak Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oyak Cimento Fabrikalari has no effect on the direction of Baticim Bati i.e., Baticim Bati and Oyak Cimento go up and down completely randomly.
Pair Corralation between Baticim Bati and Oyak Cimento
Assuming the 90 days trading horizon Baticim Bati Anadolu is expected to under-perform the Oyak Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Baticim Bati Anadolu is 1.33 times less risky than Oyak Cimento. The stock trades about -0.36 of its potential returns per unit of risk. The Oyak Cimento Fabrikalari is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,470 in Oyak Cimento Fabrikalari on December 1, 2024 and sell it today you would earn a total of 310.00 from holding Oyak Cimento Fabrikalari or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baticim Bati Anadolu vs. Oyak Cimento Fabrikalari
Performance |
| Timeline |
| Baticim Bati Anadolu |
| Oyak Cimento Fabrikalari |
Baticim Bati and Oyak Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baticim Bati and Oyak Cimento
The main advantage of trading using opposite Baticim Bati and Oyak Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baticim Bati position performs unexpectedly, Oyak Cimento 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 Oyak Cimento will offset losses from the drop in Oyak Cimento's long position.| Baticim Bati vs. Gentas Genel Metal | Baticim Bati vs. Borlease Otomotiv AS | Baticim Bati vs. ICBC Turkey Bank | Baticim Bati vs. Politeknik Metal Sanayi |
| Oyak Cimento vs. Cuhadaroglu Metal Sanayi | Oyak Cimento vs. MEGA METAL | Oyak Cimento vs. Datagate Bilgisayar Malzemeleri | Oyak Cimento 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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