Correlation Between Bera Holding and Dogan Sirketler

Can any of the company-specific risk be diversified away by investing in both Bera Holding and Dogan Sirketler 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 Bera Holding and Dogan Sirketler into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bera Holding AS and Dogan Sirketler Grubu, you can compare the effects of market volatilities on Bera Holding and Dogan Sirketler 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 Bera Holding with a short position of Dogan Sirketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bera Holding and Dogan Sirketler.

Diversification Opportunities for Bera Holding and Dogan Sirketler

0.92

Correlation Coefficient

Bera Holding  Dogan Sirketler

Almost no diversification

The 3 months correlation between Bera and Dogan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bera Holding AS and Dogan Sirketler Grubu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogan Sirketler Grubu and Bera Holding 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 Bera Holding AS are associated (or correlated) with Dogan Sirketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogan Sirketler Grubu has no effect on the direction of Bera Holding i.e., Bera Holding and Dogan Sirketler go up and down completely randomly.

Pair Corralation between Bera Holding and Dogan Sirketler

Assuming the 90 days trading horizon Bera Holding is expected to generate 1.85 times less return on investment than Dogan Sirketler. In addition to that, Bera Holding is 1.17 times more volatile than Dogan Sirketler Grubu. It trades about 0.02 of its total potential returns per unit of risk. Dogan Sirketler Grubu is currently generating about 0.03 per unit of volatility. If you would invest  1,127  in Dogan Sirketler Grubu on September 23, 2024 and sell it today you would earn a total of  385.00  from holding Dogan Sirketler Grubu or generate 34.16% return on investment over 90 days.

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

Bera Holding AS  vs.  Dogan Sirketler Grubu

Bera Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bera Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Dogan Sirketler Grubu

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bera Holding and Dogan Sirketler

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

The idea behind Bera Holding AS and Dogan Sirketler Grubu 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.