Correlation Between Kuyas Yatirim and Brisa Bridgestone
Can any of the company-specific risk be diversified away by investing in both Kuyas Yatirim and Brisa Bridgestone 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 Kuyas Yatirim and Brisa Bridgestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuyas Yatirim AS and Brisa Bridgestone Sabanci, you can compare the effects of market volatilities on Kuyas Yatirim and Brisa Bridgestone 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 Kuyas Yatirim with a short position of Brisa Bridgestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Brisa Bridgestone.
Diversification Opportunities for Kuyas Yatirim and Brisa Bridgestone
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuyas and Brisa is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS and Brisa Bridgestone Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brisa Bridgestone Sabanci and Kuyas Yatirim 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 Kuyas Yatirim AS are associated (or correlated) with Brisa Bridgestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brisa Bridgestone Sabanci has no effect on the direction of Kuyas Yatirim i.e., Kuyas Yatirim and Brisa Bridgestone go up and down completely randomly.
Pair Corralation between Kuyas Yatirim and Brisa Bridgestone
Assuming the 90 days trading horizon Kuyas Yatirim is expected to generate 1.88 times less return on investment than Brisa Bridgestone. But when comparing it to its historical volatility, Kuyas Yatirim AS is 1.3 times less risky than Brisa Bridgestone. It trades about 0.2 of its potential returns per unit of risk. Brisa Bridgestone Sabanci is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,410 in Brisa Bridgestone Sabanci on August 28, 2024 and sell it today you would earn a total of 1,390 from holding Brisa Bridgestone Sabanci or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuyas Yatirim AS vs. Brisa Bridgestone Sabanci
Performance |
| Timeline |
| Kuyas Yatirim AS |
| Brisa Bridgestone Sabanci |
Kuyas Yatirim and Brisa Bridgestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuyas Yatirim and Brisa Bridgestone
The main advantage of trading using opposite Kuyas Yatirim and Brisa Bridgestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuyas Yatirim position performs unexpectedly, Brisa Bridgestone 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 Brisa Bridgestone will offset losses from the drop in Brisa Bridgestone's long position.| Kuyas Yatirim vs. Brisa Bridgestone Sabanci | Kuyas Yatirim vs. IZDEMIR Enerji Elektrik | Kuyas Yatirim vs. Margun Enerji Uretim | Kuyas Yatirim vs. Kent Gida Maddeleri |
| Brisa Bridgestone vs. Qnb Finansbank AS | Brisa Bridgestone vs. Kent Gida Maddeleri | Brisa Bridgestone vs. QNB Finans Finansal | Brisa Bridgestone vs. Turkiye Kalkinma Bankasi |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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