Correlation Between Biotrend Cevre and Girisim Elektrik

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

By analyzing existing cross correlation between Biotrend Cevre ve and Girisim Elektrik Taahhut, you can compare the effects of market volatilities on Biotrend Cevre and Girisim Elektrik 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 Biotrend Cevre with a short position of Girisim Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotrend Cevre and Girisim Elektrik.

Diversification Opportunities for Biotrend Cevre and Girisim Elektrik

0.11

Correlation Coefficient

Biotrend Cevre  Girisim Elektrik

Average diversification

The 3 months correlation between Biotrend and Girisim is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Biotrend Cevre ve and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut and Biotrend Cevre 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 Biotrend Cevre ve are associated (or correlated) with Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Biotrend Cevre i.e., Biotrend Cevre and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Biotrend Cevre and Girisim Elektrik

Assuming the 90 days trading horizon Biotrend Cevre ve is expected to generate 0.95 times more return on investment than Girisim Elektrik. However, Biotrend Cevre ve is 1.05 times less risky than Girisim Elektrik. It trades about -0.01 of its potential returns per unit of risk. Girisim Elektrik Taahhut is currently generating about -0.04 per unit of risk. If you would invest  1,976  in Biotrend Cevre ve on October 5, 2024 and sell it today you would lose (289.00) from holding Biotrend Cevre ve or give up 14.63% of portfolio value over 90 days.

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

Biotrend Cevre ve  vs.  Girisim Elektrik Taahhut

Biotrend Cevre ve

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Biotrend Cevre ve are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Biotrend Cevre is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Girisim Elektrik Taahhut are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Girisim Elektrik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biotrend Cevre and Girisim Elektrik

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

The idea behind Biotrend Cevre ve and Girisim Elektrik Taahhut 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.