Correlation Between Biotrend Cevre and Pamel Yenilenebilir

Can any of the company-specific risk be diversified away by investing in both Biotrend Cevre and Pamel Yenilenebilir 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 Pamel Yenilenebilir 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 Pamel Yenilenebilir Elektrik, you can compare the effects of market volatilities on Biotrend Cevre and Pamel Yenilenebilir 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 Pamel Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotrend Cevre and Pamel Yenilenebilir.

Diversification Opportunities for Biotrend Cevre and Pamel Yenilenebilir

-0.43

Correlation Coefficient

Biotrend Cevre  Pamel Yenilenebilir

Very good diversification

The 3 months correlation between Biotrend and Pamel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Biotrend Cevre ve and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir 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 Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of Biotrend Cevre i.e., Biotrend Cevre and Pamel Yenilenebilir go up and down completely randomly.

Pair Corralation between Biotrend Cevre and Pamel Yenilenebilir

Assuming the 90 days trading horizon Biotrend Cevre ve is expected to generate 1.1 times more return on investment than Pamel Yenilenebilir. However, Biotrend Cevre is 1.1 times more volatile than Pamel Yenilenebilir Elektrik. It trades about -0.05 of its potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about -0.06 per unit of risk. If you would invest  1,915  in Biotrend Cevre ve on October 20, 2024 and sell it today you would lose (335.00) from holding Biotrend Cevre ve or give up 17.49% of portfolio value over 90 days.

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

Biotrend Cevre ve  vs.  Pamel Yenilenebilir Elektrik

Biotrend Cevre ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biotrend Cevre ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pamel Yenilenebilir

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pamel Yenilenebilir Elektrik are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Pamel Yenilenebilir may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Biotrend Cevre and Pamel Yenilenebilir

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

The idea behind Biotrend Cevre ve and Pamel Yenilenebilir Elektrik 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.