Correlation Between BIST Electricity and Migros Ticaret
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By analyzing existing cross correlation between BIST Electricity and Migros Ticaret AS, you can compare the effects of market volatilities on BIST Electricity and Migros Ticaret 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 Migros Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Migros Ticaret.
Diversification Opportunities for BIST Electricity and Migros Ticaret
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIST and Migros is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Migros Ticaret AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migros Ticaret 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 Migros Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migros Ticaret AS has no effect on the direction of BIST Electricity i.e., BIST Electricity and Migros Ticaret go up and down completely randomly.
Pair Corralation between BIST Electricity and Migros Ticaret
Assuming the 90 days trading horizon BIST Electricity is expected to generate 2.85 times less return on investment than Migros Ticaret. But when comparing it to its historical volatility, BIST Electricity is 2.04 times less risky than Migros Ticaret. It trades about 0.23 of its potential returns per unit of risk. Migros Ticaret AS is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 40,491 in Migros Ticaret AS on September 4, 2024 and sell it today you would earn a total of 8,134 from holding Migros Ticaret AS or generate 20.09% 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. Migros Ticaret AS
Performance |
| Timeline |
BIST Electricity and Migros Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Migros Ticaret AS
Pair trading matchups for Migros Ticaret
Pair Trading with BIST Electricity and Migros Ticaret
The main advantage of trading using opposite BIST Electricity and Migros Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Migros Ticaret 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 Migros Ticaret will offset losses from the drop in Migros Ticaret's long position.| BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Borlease Otomotiv AS | BIST Electricity vs. Turkiye Kalkinma Bankasi |
| Migros Ticaret vs. BIM Birlesik Magazalar | Migros Ticaret vs. Turkiye Sise ve | Migros Ticaret vs. Pegasus Hava Tasimaciligi | Migros Ticaret vs. Turkiye Petrol Rafinerileri |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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