Correlation Between Derimod Konfeksiyon and Bayrak EBT

Can any of the company-specific risk be diversified away by investing in both Derimod Konfeksiyon and Bayrak EBT 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 Derimod Konfeksiyon and Bayrak EBT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Derimod Konfeksiyon Ayakkabi and Bayrak EBT Taban, you can compare the effects of market volatilities on Derimod Konfeksiyon and Bayrak EBT 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 Derimod Konfeksiyon with a short position of Bayrak EBT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Derimod Konfeksiyon and Bayrak EBT.

Diversification Opportunities for Derimod Konfeksiyon and Bayrak EBT

0.29

Correlation Coefficient

Derimod Konfeksiyon  Bayrak EBT

Modest diversification

The 3 months correlation between Derimod and Bayrak is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Derimod Konfeksiyon Ayakkabi and Bayrak EBT Taban in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayrak EBT Taban and Derimod Konfeksiyon 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 Derimod Konfeksiyon Ayakkabi are associated (or correlated) with Bayrak EBT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayrak EBT Taban has no effect on the direction of Derimod Konfeksiyon i.e., Derimod Konfeksiyon and Bayrak EBT go up and down completely randomly.

Pair Corralation between Derimod Konfeksiyon and Bayrak EBT

Assuming the 90 days trading horizon Derimod Konfeksiyon Ayakkabi is expected to generate 2.41 times more return on investment than Bayrak EBT. However, Derimod Konfeksiyon is 2.41 times more volatile than Bayrak EBT Taban. It trades about 0.08 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about 0.02 per unit of risk. If you would invest  3,196  in Derimod Konfeksiyon Ayakkabi on September 23, 2024 and sell it today you would earn a total of  158.00  from holding Derimod Konfeksiyon Ayakkabi or generate 4.94% return on investment over 90 days.

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

Derimod Konfeksiyon Ayakkabi  vs.  Bayrak EBT Taban

Derimod Konfeksiyon

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bayrak EBT Taban

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bayrak EBT Taban has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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 Derimod Konfeksiyon and Bayrak EBT

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

The idea behind Derimod Konfeksiyon Ayakkabi and Bayrak EBT Taban 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.

Check out your portfolio center.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.