Correlation Between Kent Gida and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both Kent Gida and BIM Birlesik 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 Kent Gida and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kent Gida Maddeleri and BIM Birlesik Magazalar, you can compare the effects of market volatilities on Kent Gida and BIM Birlesik 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 Kent Gida with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and BIM Birlesik.
Diversification Opportunities for Kent Gida and BIM Birlesik
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kent and BIM is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar and Kent Gida 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 Kent Gida Maddeleri are associated (or correlated) with BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Kent Gida i.e., Kent Gida and BIM Birlesik go up and down completely randomly.
Pair Corralation between Kent Gida and BIM Birlesik
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 2.25 times more return on investment than BIM Birlesik. However, Kent Gida is 2.25 times more volatile than BIM Birlesik Magazalar. It trades about 0.07 of its potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.08 per unit of risk. If you would invest 43,500 in Kent Gida Maddeleri on September 4, 2024 and sell it today you would earn a total of 35,850 from holding Kent Gida Maddeleri or generate 82.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. BIM Birlesik Magazalar
Performance |
| Timeline |
| Kent Gida Maddeleri |
| BIM Birlesik Magazalar |
Kent Gida and BIM Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and BIM Birlesik
The main advantage of trading using opposite Kent Gida and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, BIM Birlesik 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 BIM Birlesik will offset losses from the drop in BIM Birlesik's long position.| Kent Gida vs. Pamel Yenilenebilir Elektrik | Kent Gida vs. Yesil Yatirim Holding | Kent Gida vs. Ekiz Kimya Sanayi |
| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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