Correlation Between Ekiz Kimya and Bayrak EBT

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

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

Diversification Opportunities for Ekiz Kimya and Bayrak EBT

-0.01

Correlation Coefficient

Ekiz Kimya  Bayrak EBT

Good diversification

The 3 months correlation between Ekiz and Bayrak is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ekiz Kimya Sanayi 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 Ekiz Kimya 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 Ekiz Kimya Sanayi 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 Ekiz Kimya i.e., Ekiz Kimya and Bayrak EBT go up and down completely randomly.

Pair Corralation between Ekiz Kimya and Bayrak EBT

Assuming the 90 days trading horizon Ekiz Kimya is expected to generate 1.07 times less return on investment than Bayrak EBT. But when comparing it to its historical volatility, Ekiz Kimya Sanayi is 1.1 times less risky than Bayrak EBT. It trades about 0.08 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  488.00  in Bayrak EBT Taban on October 5, 2024 and sell it today you would earn a total of  1,258  from holding Bayrak EBT Taban or generate 257.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.58%
Values	Daily Returns

Ekiz Kimya Sanayi  vs.  Bayrak EBT Taban

Ekiz Kimya Sanayi

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ekiz Kimya Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ekiz Kimya is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

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 fairly strong forward indicators, Bayrak EBT is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Ekiz Kimya and Bayrak EBT

The main advantage of trading using opposite Ekiz Kimya and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekiz Kimya 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 Ekiz Kimya Sanayi 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.