Correlation Between Aygaz AS and Brisa Bridgestone
Can any of the company-specific risk be diversified away by investing in both Aygaz AS and Brisa Bridgestone 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 Aygaz AS and Brisa Bridgestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aygaz AS and Brisa Bridgestone Sabanci, you can compare the effects of market volatilities on Aygaz AS and Brisa Bridgestone 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 Aygaz AS with a short position of Brisa Bridgestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aygaz AS and Brisa Bridgestone.
Diversification Opportunities for Aygaz AS and Brisa Bridgestone
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aygaz and Brisa is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aygaz AS and Brisa Bridgestone Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brisa Bridgestone Sabanci and Aygaz AS 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 Aygaz AS are associated (or correlated) with Brisa Bridgestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brisa Bridgestone Sabanci has no effect on the direction of Aygaz AS i.e., Aygaz AS and Brisa Bridgestone go up and down completely randomly.
Pair Corralation between Aygaz AS and Brisa Bridgestone
Assuming the 90 days trading horizon Aygaz AS is expected to generate 1.16 times more return on investment than Brisa Bridgestone. However, Aygaz AS is 1.16 times more volatile than Brisa Bridgestone Sabanci. It trades about -0.17 of its potential returns per unit of risk. Brisa Bridgestone Sabanci is currently generating about -0.21 per unit of risk. If you would invest 17,640 in Aygaz AS on December 2, 2024 and sell it today you would lose (3,130) from holding Aygaz AS or give up 17.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aygaz AS vs. Brisa Bridgestone Sabanci
Performance |
Timeline |
Aygaz AS |
Brisa Bridgestone Sabanci |
Aygaz AS and Brisa Bridgestone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aygaz AS and Brisa Bridgestone
The main advantage of trading using opposite Aygaz AS and Brisa Bridgestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aygaz AS position performs unexpectedly, Brisa Bridgestone 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 Brisa Bridgestone will offset losses from the drop in Brisa Bridgestone's long position.Aygaz AS vs. Turkiye Petrol Rafinerileri | Aygaz AS vs. Aksa Akrilik Kimya | Aygaz AS vs. Arcelik AS | Aygaz AS vs. Tofas Turk Otomobil |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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