Correlation Between Birlik Mensucat and Peker Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Birlik Mensucat and Peker 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 Birlik Mensucat and Peker Gayrimenkul 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 Peker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Birlik Mensucat and Peker 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 Birlik Mensucat with a short position of Peker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birlik Mensucat and Peker Gayrimenkul.

Diversification Opportunities for Birlik Mensucat and Peker Gayrimenkul

-0.08

Correlation Coefficient

Birlik Mensucat  Peker Gayrimenkul

Good diversification

The 3 months correlation between Birlik and Peker is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Birlik Mensucat Ticaret and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Birlik Mensucat i.e., Birlik Mensucat and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Birlik Mensucat and Peker Gayrimenkul

Assuming the 90 days trading horizon Birlik Mensucat is expected to generate 114.52 times less return on investment than Peker Gayrimenkul. In addition to that, Birlik Mensucat is 1.25 times more volatile than Peker Gayrimenkul Yatirim. It trades about 0.0 of its total potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about 0.16 per unit of volatility. If you would invest  107.00  in Peker Gayrimenkul Yatirim on October 23, 2024 and sell it today you would earn a total of  40.00  from holding Peker Gayrimenkul Yatirim or generate 37.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Birlik Mensucat Ticaret  vs.  Peker Gayrimenkul Yatirim

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.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Birlik Mensucat and Peker Gayrimenkul

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

The idea behind Birlik Mensucat Ticaret and Peker 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.