Correlation Between Birlik Mensucat and Kent Gida

Can any of the company-specific risk be diversified away by investing in both Birlik Mensucat and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Birlik Mensucat and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birlik Mensucat and Kent Gida.

Diversification Opportunities for Birlik Mensucat and Kent Gida

-0.32

Correlation Coefficient

Birlik Mensucat  Kent Gida

Very good diversification

The 3 months correlation between Birlik and Kent is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Birlik Mensucat Ticaret and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Birlik Mensucat i.e., Birlik Mensucat and Kent Gida go up and down completely randomly.

Pair Corralation between Birlik Mensucat and Kent Gida

Assuming the 90 days trading horizon Birlik Mensucat Ticaret is expected to generate 0.86 times more return on investment than Kent Gida. However, Birlik Mensucat Ticaret is 1.16 times less risky than Kent Gida. It trades about 0.03 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about -0.08 per unit of risk. If you would invest  516.00  in Birlik Mensucat Ticaret on October 25, 2024 and sell it today you would earn a total of  4.00  from holding Birlik Mensucat Ticaret or generate 0.78% 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.  Kent Gida Maddeleri

Birlik Mensucat Ticaret

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Birlik Mensucat Ticaret are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Birlik Mensucat may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Kent Gida Maddeleri

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kent Gida Maddeleri are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Kent Gida unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Birlik Mensucat and Kent Gida

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

The idea behind Birlik Mensucat Ticaret and Kent Gida Maddeleri 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.