Correlation Between BIST Electricity and Alfas Solar
Specify exactly 2 symbols:
By analyzing existing cross correlation between BIST Electricity and Alfas Solar Enerji, you can compare the effects of market volatilities on BIST Electricity and Alfas Solar 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 Alfas Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Alfas Solar.
Diversification Opportunities for BIST Electricity and Alfas Solar
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIST and Alfas is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Alfas Solar Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfas Solar Enerji 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 Alfas Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfas Solar Enerji has no effect on the direction of BIST Electricity i.e., BIST Electricity and Alfas Solar go up and down completely randomly.
Pair Corralation between BIST Electricity and Alfas Solar
Assuming the 90 days trading horizon BIST Electricity is expected to generate 51.04 times less return on investment than Alfas Solar. But when comparing it to its historical volatility, BIST Electricity is 15.04 times less risky than Alfas Solar. It trades about 0.01 of its potential returns per unit of risk. Alfas Solar Enerji is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,108 in Alfas Solar Enerji on August 30, 2024 and sell it today you would earn a total of 2,057 from holding Alfas Solar Enerji or generate 66.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. Alfas Solar Enerji
Performance |
| Timeline |
BIST Electricity and Alfas Solar Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Alfas Solar Enerji
Pair trading matchups for Alfas Solar
Pair Trading with BIST Electricity and Alfas Solar
The main advantage of trading using opposite BIST Electricity and Alfas Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Alfas Solar 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 Alfas Solar will offset losses from the drop in Alfas Solar's long position.| BIST Electricity vs. Gentas Genel Metal | BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Turkiye Kalkinma Bankasi | BIST Electricity vs. Sodas Sodyum Sanayi |
| Alfas Solar vs. Trabzonspor Sportif Yatirim | Alfas Solar vs. Cuhadaroglu Metal Sanayi | Alfas Solar vs. MEGA METAL | Alfas Solar vs. Creditwest Faktoring 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |