Correlation Between Flap Kongre and Birlik Mensucat

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

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

Diversification Opportunities for Flap Kongre and Birlik Mensucat

-0.47

Correlation Coefficient

Flap Kongre  Birlik Mensucat

Very good diversification

The 3 months correlation between Flap and Birlik is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Flap Kongre Toplanti and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret and Flap Kongre 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 Flap Kongre Toplanti are associated (or correlated) with Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Flap Kongre i.e., Flap Kongre and Birlik Mensucat go up and down completely randomly.

Pair Corralation between Flap Kongre and Birlik Mensucat

Assuming the 90 days trading horizon Flap Kongre Toplanti is expected to under-perform the Birlik Mensucat. But the stock apears to be less risky and, when comparing its historical volatility, Flap Kongre Toplanti is 1.11 times less risky than Birlik Mensucat. The stock trades about -0.01 of its potential returns per unit of risk. The Birlik Mensucat Ticaret is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  438.00  in Birlik Mensucat Ticaret on September 23, 2024 and sell it today you would earn a total of  84.00  from holding Birlik Mensucat Ticaret or generate 19.18% return on investment over 90 days.

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

Flap Kongre Toplanti  vs.  Birlik Mensucat Ticaret

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.

Pair Trading with Flap Kongre and Birlik Mensucat

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

The idea behind Flap Kongre Toplanti and Birlik Mensucat Ticaret 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.