Correlation Between Gubre Fabrikalari and Bera Holding
Can any of the company-specific risk be diversified away by investing in both Gubre Fabrikalari 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 Gubre Fabrikalari and Bera Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gubre Fabrikalari TAS and Bera Holding AS, you can compare the effects of market volatilities on Gubre Fabrikalari 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 Gubre Fabrikalari with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gubre Fabrikalari and Bera Holding.
Diversification Opportunities for Gubre Fabrikalari and Bera Holding
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gubre and Bera is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gubre Fabrikalari TAS 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 Gubre Fabrikalari 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 Gubre Fabrikalari TAS 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 Gubre Fabrikalari i.e., Gubre Fabrikalari and Bera Holding go up and down completely randomly.
Pair Corralation between Gubre Fabrikalari and Bera Holding
Assuming the 90 days trading horizon Gubre Fabrikalari TAS is expected to generate 1.09 times more return on investment than Bera Holding. However, Gubre Fabrikalari is 1.09 times more volatile than Bera Holding AS. It trades about 0.21 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.03 per unit of risk. If you would invest 17,380 in Gubre Fabrikalari TAS on September 2, 2024 and sell it today you would earn a total of 7,520 from holding Gubre Fabrikalari TAS or generate 43.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gubre Fabrikalari TAS vs. Bera Holding AS
Performance |
| Timeline |
| Gubre Fabrikalari TAS |
| Bera Holding AS |
Gubre Fabrikalari and Bera Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gubre Fabrikalari and Bera Holding
The main advantage of trading using opposite Gubre Fabrikalari and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gubre Fabrikalari 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.| Gubre Fabrikalari vs. Trend Gayrimenkul Yatirim | Gubre Fabrikalari vs. Trabzon Liman Isletmeciligi | Gubre Fabrikalari vs. Halk Gayrimenkul Yatirim | Gubre Fabrikalari vs. Inveo Yatirim Holding |
| 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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