Correlation Between Birlik Mensucat and Dogu Aras

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

By analyzing existing cross correlation between Birlik Mensucat Ticaret and Dogu Aras Enerji, you can compare the effects of market volatilities on Birlik Mensucat and Dogu Aras 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 Birlik Mensucat with a short position of Dogu Aras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birlik Mensucat and Dogu Aras.

Diversification Opportunities for Birlik Mensucat and Dogu Aras

-0.35

Correlation Coefficient

Birlik Mensucat  Dogu Aras

Very good diversification

The 3 months correlation between Birlik and Dogu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Birlik Mensucat Ticaret and Dogu Aras Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogu Aras Enerji and Birlik Mensucat 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 Birlik Mensucat Ticaret are associated (or correlated) with Dogu Aras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogu Aras Enerji has no effect on the direction of Birlik Mensucat i.e., Birlik Mensucat and Dogu Aras go up and down completely randomly.

Pair Corralation between Birlik Mensucat and Dogu Aras

Assuming the 90 days trading horizon Birlik Mensucat Ticaret is expected to under-perform the Dogu Aras. In addition to that, Birlik Mensucat is 2.24 times more volatile than Dogu Aras Enerji. It trades about -0.16 of its total potential returns per unit of risk. Dogu Aras Enerji is currently generating about 0.07 per unit of volatility. If you would invest  5,095  in Dogu Aras Enerji on September 23, 2024 and sell it today you would earn a total of  135.00  from holding Dogu Aras Enerji or generate 2.65% return on investment over 90 days.

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

Birlik Mensucat Ticaret  vs.  Dogu Aras Enerji

Birlik Mensucat Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

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

Dogu Aras Enerji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dogu Aras Enerji has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Birlik Mensucat and Dogu Aras

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

The idea behind Birlik Mensucat Ticaret and Dogu Aras Enerji 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.