Correlation Between BIST Electricity and Kafein Yazilim
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By analyzing existing cross correlation between BIST Electricity and Kafein Yazilim, you can compare the effects of market volatilities on BIST Electricity and Kafein Yazilim 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 Kafein Yazilim. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Kafein Yazilim.
Diversification Opportunities for BIST Electricity and Kafein Yazilim
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIST and Kafein is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Kafein Yazilim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kafein Yazilim 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 Kafein Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kafein Yazilim has no effect on the direction of BIST Electricity i.e., BIST Electricity and Kafein Yazilim go up and down completely randomly.
Pair Corralation between BIST Electricity and Kafein Yazilim
Assuming the 90 days trading horizon BIST Electricity is expected to generate 10.52 times less return on investment than Kafein Yazilim. But when comparing it to its historical volatility, BIST Electricity is 1.88 times less risky than Kafein Yazilim. It trades about 0.01 of its potential returns per unit of risk. Kafein Yazilim is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,200 in Kafein Yazilim on September 3, 2024 and sell it today you would earn a total of 5,260 from holding Kafein Yazilim or generate 164.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
BIST Electricity vs. Kafein Yazilim
Performance |
| Timeline |
BIST Electricity and Kafein Yazilim Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Kafein Yazilim
Pair trading matchups for Kafein Yazilim
Pair Trading with BIST Electricity and Kafein Yazilim
The main advantage of trading using opposite BIST Electricity and Kafein Yazilim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Kafein Yazilim 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 Kafein Yazilim will offset losses from the drop in Kafein Yazilim's long position.| BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Silverline Endustri ve | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. Bms Birlesik Metal |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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