Correlation Between Iskenderun Demir and Bera Holding

Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir and Bera Holding 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 Iskenderun Demir and Bera Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iskenderun Demir ve and Bera Holding AS, you can compare the effects of market volatilities on Iskenderun Demir and Bera Holding 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 Iskenderun Demir with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Bera Holding.

Diversification Opportunities for Iskenderun Demir and Bera Holding

0.64

Correlation Coefficient

Iskenderun Demir  Bera Holding

Poor diversification

The 3 months correlation between Iskenderun and Bera is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Bera Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bera Holding AS and Iskenderun Demir 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 Iskenderun Demir ve are associated (or correlated) with Bera Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bera Holding AS has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Bera Holding go up and down completely randomly.

Pair Corralation between Iskenderun Demir and Bera Holding

Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.79 times more return on investment than Bera Holding. However, Iskenderun Demir ve is 1.27 times less risky than Bera Holding. It trades about 0.03 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.02 per unit of risk. If you would invest  3,382  in Iskenderun Demir ve on September 24, 2024 and sell it today you would earn a total of  776.00  from holding Iskenderun Demir ve or generate 22.95% return on investment over 90 days.

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

Iskenderun Demir ve  vs.  Bera Holding AS

Iskenderun Demir

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Iskenderun Demir ve are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Iskenderun Demir demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Bera Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bera Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Iskenderun Demir and Bera Holding

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

The idea behind Iskenderun Demir ve and Bera Holding AS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.