Correlation Between Bayrak EBT and Turk Tuborg

Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Turk Tuborg 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 Turk Tuborg 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 Turk Tuborg Bira, you can compare the effects of market volatilities on Bayrak EBT and Turk Tuborg 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 Turk Tuborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Turk Tuborg.

Diversification Opportunities for Bayrak EBT and Turk Tuborg

-0.15

Correlation Coefficient

Bayrak EBT  Turk Tuborg

Good diversification

The 3 months correlation between Bayrak and Turk is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Turk Tuborg Bira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Tuborg Bira 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 Turk Tuborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Tuborg Bira has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Turk Tuborg go up and down completely randomly.

Pair Corralation between Bayrak EBT and Turk Tuborg

Assuming the 90 days trading horizon Bayrak EBT Taban is expected to under-perform the Turk Tuborg. In addition to that, Bayrak EBT is 1.23 times more volatile than Turk Tuborg Bira. It trades about -0.08 of its total potential returns per unit of risk. Turk Tuborg Bira is currently generating about 0.12 per unit of volatility. If you would invest  9,373  in Turk Tuborg Bira on October 2, 2024 and sell it today you would earn a total of  4,907  from holding Turk Tuborg Bira or generate 52.35% return on investment over 90 days.

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

Bayrak EBT Taban  vs.  Turk Tuborg Bira

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 fairly strong forward indicators, Bayrak EBT is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Turk Tuborg Bira

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turk Tuborg Bira are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turk Tuborg demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bayrak EBT and Turk Tuborg

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

The idea behind Bayrak EBT Taban and Turk Tuborg Bira 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..