Correlation Between Bayrak EBT and Kartonsan Karton

Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Kartonsan Karton 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 Bayrak EBT and Kartonsan Karton into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Bayrak EBT and Kartonsan Karton

0.24

Correlation Coefficient

Bayrak EBT  Kartonsan Karton

Modest diversification

The 3 months correlation between Bayrak and Kartonsan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Kartonsan Karton Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartonsan Karton Sanayi and Bayrak EBT 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 Bayrak EBT Taban are associated (or correlated) with Kartonsan Karton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartonsan Karton Sanayi has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Kartonsan Karton go up and down completely randomly.

Pair Corralation between Bayrak EBT and Kartonsan Karton

Assuming the 90 days trading horizon Bayrak EBT Taban is expected to generate 1.48 times more return on investment than Kartonsan Karton. However, Bayrak EBT is 1.48 times more volatile than Kartonsan Karton Sanayi. It trades about 0.07 of its potential returns per unit of risk. Kartonsan Karton Sanayi is currently generating about 0.02 per unit of risk. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bayrak EBT Taban  vs.  Kartonsan Karton Sanayi

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.

Kartonsan Karton Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kartonsan Karton Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Kartonsan Karton is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bayrak EBT and Kartonsan Karton

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

The idea behind Bayrak EBT Taban and Kartonsan Karton Sanayi 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.