Correlation Between Indeks Bilgisayar and Penta Teknoloji

Can any of the company-specific risk be diversified away by investing in both Indeks Bilgisayar and Penta Teknoloji 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 Indeks Bilgisayar and Penta Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Indeks Bilgisayar Sistemleri and Penta Teknoloji Urunleri, you can compare the effects of market volatilities on Indeks Bilgisayar and Penta Teknoloji 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 Indeks Bilgisayar with a short position of Penta Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indeks Bilgisayar and Penta Teknoloji.

Diversification Opportunities for Indeks Bilgisayar and Penta Teknoloji

0.37

Correlation Coefficient

Indeks Bilgisayar  Penta Teknoloji

Weak diversification

The 3 months correlation between Indeks and Penta is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Indeks Bilgisayar Sistemleri and Penta Teknoloji Urunleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Teknoloji Urunleri and Indeks Bilgisayar 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 Indeks Bilgisayar Sistemleri are associated (or correlated) with Penta Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Teknoloji Urunleri has no effect on the direction of Indeks Bilgisayar i.e., Indeks Bilgisayar and Penta Teknoloji go up and down completely randomly.

Pair Corralation between Indeks Bilgisayar and Penta Teknoloji

Assuming the 90 days trading horizon Indeks Bilgisayar Sistemleri is expected to generate 1.1 times more return on investment than Penta Teknoloji. However, Indeks Bilgisayar is 1.1 times more volatile than Penta Teknoloji Urunleri. It trades about -0.01 of its potential returns per unit of risk. Penta Teknoloji Urunleri is currently generating about -0.07 per unit of risk. If you would invest  751.00  in Indeks Bilgisayar Sistemleri on December 30, 2024 and sell it today you would lose (40.00) from holding Indeks Bilgisayar Sistemleri or give up 5.33% of portfolio value over 90 days.

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

Indeks Bilgisayar Sistemleri  vs.  Penta Teknoloji Urunleri

Indeks Bilgisayar

Risk-Adjusted Performance

Very Weak

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

Penta Teknoloji Urunleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Penta Teknoloji Urunleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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 Indeks Bilgisayar and Penta Teknoloji

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

The idea behind Indeks Bilgisayar Sistemleri and Penta Teknoloji Urunleri 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.