Correlation Between BIST Electricity and Galata Wind
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By analyzing existing cross correlation between BIST Electricity and Galata Wind Enerji, you can compare the effects of market volatilities on BIST Electricity and Galata Wind 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 Galata Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Galata Wind.
Diversification Opportunities for BIST Electricity and Galata Wind
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIST and Galata is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Galata Wind Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galata Wind 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 Galata Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galata Wind Enerji has no effect on the direction of BIST Electricity i.e., BIST Electricity and Galata Wind go up and down completely randomly.
Pair Corralation between BIST Electricity and Galata Wind
Assuming the 90 days trading horizon BIST Electricity is expected to under-perform the Galata Wind. But the index apears to be less risky and, when comparing its historical volatility, BIST Electricity is 1.37 times less risky than Galata Wind. The index trades about -0.01 of its potential returns per unit of risk. The Galata Wind Enerji is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,424 in Galata Wind Enerji on September 2, 2024 and sell it today you would earn a total of 94.00 from holding Galata Wind Enerji or generate 3.88% 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. Galata Wind Enerji
Performance |
| Timeline |
BIST Electricity and Galata Wind Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Galata Wind Enerji
Pair trading matchups for Galata Wind
Pair Trading with BIST Electricity and Galata Wind
The main advantage of trading using opposite BIST Electricity and Galata Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Galata Wind 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 Galata Wind will offset losses from the drop in Galata Wind's long position.| BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Qnb Finansbank AS | BIST Electricity vs. Turkiye Kalkinma Bankasi |
| Galata Wind vs. Creditwest Faktoring AS | Galata Wind vs. Bms Birlesik Metal | Galata Wind vs. Politeknik Metal Sanayi | Galata Wind vs. Galatasaray Sportif Sinai |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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