Correlation Between Sekerbank TAS and Burcelik Vana
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Burcelik Vana 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 Sekerbank TAS and Burcelik Vana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Burcelik Vana Sanayi, you can compare the effects of market volatilities on Sekerbank TAS and Burcelik Vana 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 Sekerbank TAS with a short position of Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Burcelik Vana.
Diversification Opportunities for Sekerbank TAS and Burcelik Vana
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sekerbank and Burcelik is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana Sanayi and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Burcelik Vana go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Burcelik Vana
Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.75 times less return on investment than Burcelik Vana. But when comparing it to its historical volatility, Sekerbank TAS is 1.41 times less risky than Burcelik Vana. It trades about 0.06 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,120 in Burcelik Vana Sanayi on November 6, 2024 and sell it today you would earn a total of 7,080 from holding Burcelik Vana Sanayi or generate 226.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Burcelik Vana Sanayi
Performance |
| Timeline |
| Sekerbank TAS |
| Burcelik Vana Sanayi |
Sekerbank TAS and Burcelik Vana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Burcelik Vana
The main advantage of trading using opposite Sekerbank TAS and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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