Correlation Between BIST Electricity and Deva Holding
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By analyzing existing cross correlation between BIST Electricity and Deva Holding AS, you can compare the effects of market volatilities on BIST Electricity and Deva Holding 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 Deva Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Deva Holding.
Diversification Opportunities for BIST Electricity and Deva Holding
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BIST and Deva is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS 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 Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of BIST Electricity i.e., BIST Electricity and Deva Holding go up and down completely randomly.
Pair Corralation between BIST Electricity and Deva Holding
Assuming the 90 days trading horizon BIST Electricity is expected to under-perform the Deva Holding. But the index apears to be less risky and, when comparing its historical volatility, BIST Electricity is 1.66 times less risky than Deva Holding. The index trades about -0.04 of its potential returns per unit of risk. The Deva Holding AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 8,514 in Deva Holding AS on November 3, 2024 and sell it today you would lose (1,374) from holding Deva Holding AS or give up 16.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
BIST Electricity vs. Deva Holding AS
Performance |
| Timeline |
BIST Electricity and Deva Holding Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Deva Holding AS
Pair trading matchups for Deva Holding
Pair Trading with BIST Electricity and Deva Holding
The main advantage of trading using opposite BIST Electricity and Deva Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Deva Holding 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 Deva Holding will offset losses from the drop in Deva Holding's long position.| BIST Electricity vs. MEGA METAL | BIST Electricity vs. Bms Birlesik Metal | BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Cuhadaroglu Metal Sanayi |
| Deva Holding vs. Alkim Alkali Kimya | Deva Holding vs. EIS Eczacibasi Ilac | Deva Holding vs. Arcelik AS | Deva Holding vs. BIM Birlesik Magazalar |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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