Correlation Between BIST Electricity and Alarko Carrier
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By analyzing existing cross correlation between BIST Electricity and Alarko Carrier Sanayi, you can compare the effects of market volatilities on BIST Electricity and Alarko Carrier 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 BIST Electricity with a short position of Alarko Carrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Alarko Carrier.
Diversification Opportunities for BIST Electricity and Alarko Carrier
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIST and Alarko is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Alarko Carrier Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alarko Carrier Sanayi and BIST Electricity 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 BIST Electricity are associated (or correlated) with Alarko Carrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alarko Carrier Sanayi has no effect on the direction of BIST Electricity i.e., BIST Electricity and Alarko Carrier go up and down completely randomly.
Pair Corralation between BIST Electricity and Alarko Carrier
Assuming the 90 days trading horizon BIST Electricity is expected to generate 2.75 times less return on investment than Alarko Carrier. But when comparing it to its historical volatility, BIST Electricity is 1.77 times less risky than Alarko Carrier. It trades about 0.03 of its potential returns per unit of risk. Alarko Carrier Sanayi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 58,745 in Alarko Carrier Sanayi on October 9, 2024 and sell it today you would earn a total of 46,055 from holding Alarko Carrier Sanayi or generate 78.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
BIST Electricity vs. Alarko Carrier Sanayi
Performance |
| Timeline |
BIST Electricity and Alarko Carrier Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Alarko Carrier Sanayi
Pair trading matchups for Alarko Carrier
Pair Trading with BIST Electricity and Alarko Carrier
The main advantage of trading using opposite BIST Electricity and Alarko Carrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Alarko Carrier 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 Alarko Carrier will offset losses from the drop in Alarko Carrier's long position.| BIST Electricity vs. Datagate Bilgisayar Malzemeleri | BIST Electricity vs. Mackolik Internet Hizmetleri | BIST Electricity vs. Bms Birlesik Metal | BIST Electricity vs. Cuhadaroglu Metal Sanayi |
| Alarko Carrier vs. Sodas Sodyum Sanayi | Alarko Carrier vs. Cuhadaroglu Metal Sanayi | Alarko Carrier vs. Datagate Bilgisayar Malzemeleri | Alarko Carrier vs. MEGA METAL |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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