Correlation Between BIST Electricity and Papilon Savunma
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By analyzing existing cross correlation between BIST Electricity and Papilon Savunma Guvenlik, you can compare the effects of market volatilities on BIST Electricity and Papilon Savunma 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 Papilon Savunma. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Papilon Savunma.
Diversification Opportunities for BIST Electricity and Papilon Savunma
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIST and Papilon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Papilon Savunma Guvenlik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papilon Savunma Guvenlik 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 Papilon Savunma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papilon Savunma Guvenlik has no effect on the direction of BIST Electricity i.e., BIST Electricity and Papilon Savunma go up and down completely randomly.
Pair Corralation between BIST Electricity and Papilon Savunma
Assuming the 90 days trading horizon BIST Electricity is expected to generate 12.32 times less return on investment than Papilon Savunma. But when comparing it to its historical volatility, BIST Electricity is 5.13 times less risky than Papilon Savunma. It trades about 0.08 of its potential returns per unit of risk. Papilon Savunma Guvenlik is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Papilon Savunma Guvenlik on September 27, 2024 and sell it today you would earn a total of 218.00 from holding Papilon Savunma Guvenlik or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. Papilon Savunma Guvenlik
Performance |
| Timeline |
BIST Electricity and Papilon Savunma Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Papilon Savunma Guvenlik
Pair trading matchups for Papilon Savunma
Pair Trading with BIST Electricity and Papilon Savunma
The main advantage of trading using opposite BIST Electricity and Papilon Savunma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Papilon Savunma 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 Papilon Savunma will offset losses from the drop in Papilon Savunma's long position.| BIST Electricity vs. Bms Birlesik Metal | BIST Electricity vs. Gentas Genel Metal | BIST Electricity vs. Silverline Endustri ve | BIST Electricity vs. Galatasaray Sportif Sinai |
| Papilon Savunma vs. SASA Polyester Sanayi | Papilon Savunma vs. Turkish Airlines | Papilon Savunma vs. Koc Holding AS | Papilon Savunma vs. Ford Otomotiv 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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