Correlation Between BIST Electricity and Turkiye Sinai
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By analyzing existing cross correlation between BIST Electricity and Turkiye Sinai Kalkinma, you can compare the effects of market volatilities on BIST Electricity and Turkiye Sinai 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 Turkiye Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Turkiye Sinai.
Diversification Opportunities for BIST Electricity and Turkiye Sinai
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIST and Turkiye is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma 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 Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of BIST Electricity i.e., BIST Electricity and Turkiye Sinai go up and down completely randomly.
Pair Corralation between BIST Electricity and Turkiye Sinai
Assuming the 90 days trading horizon BIST Electricity is expected to generate 1.19 times less return on investment than Turkiye Sinai. But when comparing it to its historical volatility, BIST Electricity is 1.43 times less risky than Turkiye Sinai. It trades about 0.14 of its potential returns per unit of risk. Turkiye Sinai Kalkinma is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,208 in Turkiye Sinai Kalkinma on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Turkiye Sinai Kalkinma or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. Turkiye Sinai Kalkinma
Performance |
| Timeline |
BIST Electricity and Turkiye Sinai Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Turkiye Sinai Kalkinma
Pair trading matchups for Turkiye Sinai
Pair Trading with BIST Electricity and Turkiye Sinai
The main advantage of trading using opposite BIST Electricity and Turkiye Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Turkiye Sinai 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 Turkiye Sinai will offset losses from the drop in Turkiye Sinai's long position.| BIST Electricity vs. MEGA METAL | BIST Electricity vs. Sodas Sodyum Sanayi | BIST Electricity vs. Silverline Endustri ve | BIST Electricity vs. Gentas Genel Metal |
| Turkiye Sinai vs. Yapi ve Kredi | Turkiye Sinai vs. Turkiye Is Bankasi | Turkiye Sinai vs. Akbank TAS | Turkiye Sinai vs. Turkiye Garanti Bankasi |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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