Correlation Between Bayrak EBT and Migros Ticaret
Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Migros Ticaret 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 Migros Ticaret 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 Migros Ticaret AS, you can compare the effects of market volatilities on Bayrak EBT and Migros Ticaret 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 Migros Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Migros Ticaret.
Diversification Opportunities for Bayrak EBT and Migros Ticaret
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bayrak and Migros is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Migros Ticaret AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migros Ticaret AS 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 Migros Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migros Ticaret AS has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Migros Ticaret go up and down completely randomly.
Pair Corralation between Bayrak EBT and Migros Ticaret
Assuming the 90 days trading horizon Bayrak EBT is expected to generate 13.74 times less return on investment than Migros Ticaret. In addition to that, Bayrak EBT is 1.02 times more volatile than Migros Ticaret AS. It trades about 0.02 of its total potential returns per unit of risk. Migros Ticaret AS is currently generating about 0.25 per unit of volatility. If you would invest 39,746 in Migros Ticaret AS on September 23, 2024 and sell it today you would earn a total of 9,979 from holding Migros Ticaret AS or generate 25.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bayrak EBT Taban vs. Migros Ticaret AS
Performance |
Timeline |
Bayrak EBT Taban |
Migros Ticaret AS |
Bayrak EBT and Migros Ticaret Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bayrak EBT and Migros Ticaret
The main advantage of trading using opposite Bayrak EBT and Migros Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayrak EBT position performs unexpectedly, Migros Ticaret 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 Migros Ticaret will offset losses from the drop in Migros Ticaret's long position.Bayrak EBT vs. Desa Deri Sanayi | Bayrak EBT vs. Derimod Konfeksiyon Ayakkabi | Bayrak EBT vs. Mackolik Internet Hizmetleri | Bayrak EBT vs. Ford Otomotiv Sanayi |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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