Correlation Between BIST Electricity and TGS Dis
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By analyzing existing cross correlation between BIST Electricity and TGS Dis Ticaret, you can compare the effects of market volatilities on BIST Electricity and TGS Dis 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 TGS Dis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and TGS Dis.
Diversification Opportunities for BIST Electricity and TGS Dis
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIST and TGS is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and TGS Dis Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Dis Ticaret 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 TGS Dis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Dis Ticaret has no effect on the direction of BIST Electricity i.e., BIST Electricity and TGS Dis go up and down completely randomly.
Pair Corralation between BIST Electricity and TGS Dis
Assuming the 90 days trading horizon BIST Electricity is expected to generate 0.71 times more return on investment than TGS Dis. However, BIST Electricity is 1.42 times less risky than TGS Dis. It trades about 0.15 of its potential returns per unit of risk. TGS Dis Ticaret is currently generating about 0.02 per unit of risk. If you would invest 46,978 in BIST Electricity on August 27, 2024 and sell it today you would earn a total of 1,970 from holding BIST Electricity or generate 4.19% 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. TGS Dis Ticaret
Performance |
| Timeline |
BIST Electricity and TGS Dis Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
TGS Dis Ticaret
Pair trading matchups for TGS Dis
Pair Trading with BIST Electricity and TGS Dis
The main advantage of trading using opposite BIST Electricity and TGS Dis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, TGS Dis 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 TGS Dis will offset losses from the drop in TGS Dis' long position.| BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. ICBC Turkey Bank | BIST Electricity vs. Turkish Airlines |
| TGS Dis vs. Bms Birlesik Metal | TGS Dis vs. Gentas Genel Metal | TGS Dis vs. Trabzonspor Sportif Yatirim | TGS Dis vs. Akcansa Cimento 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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