Correlation Between BINHO and Adese Gayrimenkul

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

By analyzing existing cross correlation between BINHO and Adese Gayrimenkul Yatirim, you can compare the effects of market volatilities on BINHO and Adese Gayrimenkul 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 BINHO with a short position of Adese Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of BINHO and Adese Gayrimenkul.

Diversification Opportunities for BINHO and Adese Gayrimenkul

0.54

Correlation Coefficient

BINHO  Adese Gayrimenkul

Very weak diversification

The 3 months correlation between BINHO and Adese is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BINHO and Adese Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adese Gayrimenkul Yatirim and BINHO 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 BINHO are associated (or correlated) with Adese Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adese Gayrimenkul Yatirim has no effect on the direction of BINHO i.e., BINHO and Adese Gayrimenkul go up and down completely randomly.

Pair Corralation between BINHO and Adese Gayrimenkul

Assuming the 90 days trading horizon BINHO is expected to generate 1.51 times more return on investment than Adese Gayrimenkul. However, BINHO is 1.51 times more volatile than Adese Gayrimenkul Yatirim. It trades about 0.09 of its potential returns per unit of risk. Adese Gayrimenkul Yatirim is currently generating about 0.03 per unit of risk. If you would invest  12,500  in BINHO on October 4, 2024 and sell it today you would earn a total of  19,075  from holding BINHO or generate 152.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	57.17%
Values	Daily Returns

BINHO  vs.  Adese Gayrimenkul Yatirim

BINHO

Risk-Adjusted Performance

0 of 100

Very Weak

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

Adese Gayrimenkul Yatirim

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Adese Gayrimenkul Yatirim are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Adese Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with BINHO and Adese Gayrimenkul

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

The idea behind BINHO and Adese Gayrimenkul Yatirim 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.