Correlation Between Alkim Kagit and Bayrak EBT

Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Bayrak EBT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alkim Kagit and Bayrak EBT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alkim Kagit Sanayi and Bayrak EBT Taban, you can compare the effects of market volatilities on Alkim Kagit and Bayrak EBT 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 Alkim Kagit with a short position of Bayrak EBT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Bayrak EBT.

Diversification Opportunities for Alkim Kagit and Bayrak EBT

0.09

Correlation Coefficient

Alkim Kagit  Bayrak EBT

Significant diversification

The 3 months correlation between Alkim and Bayrak is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Bayrak EBT Taban in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayrak EBT Taban and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Bayrak EBT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayrak EBT Taban has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Bayrak EBT go up and down completely randomly.

Pair Corralation between Alkim Kagit and Bayrak EBT

Assuming the 90 days trading horizon Alkim Kagit is expected to generate 3.17 times less return on investment than Bayrak EBT. But when comparing it to its historical volatility, Alkim Kagit Sanayi is 1.67 times less risky than Bayrak EBT. It trades about 0.04 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  996.00  in Bayrak EBT Taban on September 23, 2024 and sell it today you would earn a total of  795.00  from holding Bayrak EBT Taban or generate 79.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alkim Kagit Sanayi  vs.  Bayrak EBT Taban

Alkim Kagit Sanayi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Alkim Kagit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bayrak EBT Taban

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bayrak EBT Taban has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Alkim Kagit and Bayrak EBT

The main advantage of trading using opposite Alkim Kagit and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Bayrak EBT 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 Bayrak EBT will offset losses from the drop in Bayrak EBT's long position.

The idea behind Alkim Kagit Sanayi and Bayrak EBT Taban pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.