Correlation Between Deva Holding and Bera Holding
Can any of the company-specific risk be diversified away by investing in both Deva Holding and Bera Holding 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 Deva Holding and Bera Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deva Holding AS and Bera Holding AS, you can compare the effects of market volatilities on Deva Holding and Bera Holding 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 Deva Holding with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deva Holding and Bera Holding.
Diversification Opportunities for Deva Holding and Bera Holding
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deva and Bera is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Deva Holding AS and Bera Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bera Holding AS and Deva Holding 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 Deva Holding AS are associated (or correlated) with Bera Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bera Holding AS has no effect on the direction of Deva Holding i.e., Deva Holding and Bera Holding go up and down completely randomly.
Pair Corralation between Deva Holding and Bera Holding
Assuming the 90 days trading horizon Deva Holding is expected to generate 4.15 times less return on investment than Bera Holding. But when comparing it to its historical volatility, Deva Holding AS is 1.26 times less risky than Bera Holding. It trades about 0.06 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Bera Holding AS on August 31, 2024 and sell it today you would earn a total of 140.00 from holding Bera Holding AS or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deva Holding AS vs. Bera Holding AS
Performance |
| Timeline |
| Deva Holding AS |
| Bera Holding AS |
Deva Holding and Bera Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deva Holding and Bera Holding
The main advantage of trading using opposite Deva Holding and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deva Holding position performs unexpectedly, Bera Holding 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 Bera Holding will offset losses from the drop in Bera Holding's long position.| Deva Holding vs. Turkiye Is Bankasi | Deva Holding vs. Ege Endustri ve | Deva Holding vs. Turkiye Petrol Rafinerileri | Deva Holding vs. Ford Otomotiv Sanayi |
| Bera Holding vs. Gubre Fabrikalari TAS | Bera Holding vs. Deva Holding AS | Bera Holding vs. Dogus Otomotiv Servis | Bera Holding vs. Tekfen Holding AS |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |