Correlation Between BIST Electricity and Ege Gubre
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By analyzing existing cross correlation between BIST Electricity and Ege Gubre Sanayi, you can compare the effects of market volatilities on BIST Electricity and Ege Gubre 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 Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Ege Gubre.
Diversification Opportunities for BIST Electricity and Ege Gubre
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIST and Ege is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre 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 Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of BIST Electricity i.e., BIST Electricity and Ege Gubre go up and down completely randomly.
Pair Corralation between BIST Electricity and Ege Gubre
Assuming the 90 days trading horizon BIST Electricity is expected to generate 0.64 times more return on investment than Ege Gubre. However, BIST Electricity is 1.57 times less risky than Ege Gubre. It trades about 0.19 of its potential returns per unit of risk. Ege Gubre Sanayi is currently generating about 0.08 per unit of risk. If you would invest 46,249 in BIST Electricity on August 26, 2024 and sell it today you would earn a total of 2,699 from holding BIST Electricity or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. Ege Gubre Sanayi
Performance |
| Timeline |
BIST Electricity and Ege Gubre Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Ege Gubre Sanayi
Pair trading matchups for Ege Gubre
Pair Trading with BIST Electricity and Ege Gubre
The main advantage of trading using opposite BIST Electricity and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Ege Gubre 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 Ege Gubre will offset losses from the drop in Ege Gubre's long position.| BIST Electricity vs. Gentas Genel Metal | BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Borlease Otomotiv AS | BIST Electricity vs. Creditwest Faktoring AS |
| Ege Gubre vs. Koza Anadolu Metal | Ege Gubre vs. Politeknik Metal Sanayi | Ege Gubre vs. ICBC Turkey Bank | Ege Gubre vs. Cuhadaroglu Metal Sanayi |
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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