Correlation Between Mazhar Zorlu and Bera Holding

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

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

Diversification Opportunities for Mazhar Zorlu and Bera Holding

0.67

Correlation Coefficient

Mazhar Zorlu  Bera Holding

Poor diversification

The 3 months correlation between Mazhar and Bera is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mazhar Zorlu Holding 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 Mazhar Zorlu 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 Mazhar Zorlu Holding 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 Mazhar Zorlu i.e., Mazhar Zorlu and Bera Holding go up and down completely randomly.

Pair Corralation between Mazhar Zorlu and Bera Holding

Assuming the 90 days trading horizon Mazhar Zorlu is expected to generate 2.38 times less return on investment than Bera Holding. But when comparing it to its historical volatility, Mazhar Zorlu Holding is 1.05 times less risky than Bera Holding. It trades about 0.06 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,294  in Bera Holding AS on October 11, 2024 and sell it today you would earn a total of  272.00  from holding Bera Holding AS or generate 21.02% return on investment over 90 days.

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

Mazhar Zorlu Holding  vs.  Bera Holding AS

Mazhar Zorlu Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mazhar Zorlu Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mazhar Zorlu may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Bera Holding AS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bera Holding AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Bera Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mazhar Zorlu and Bera Holding

The main advantage of trading using opposite Mazhar Zorlu and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mazhar Zorlu 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 Mazhar Zorlu Holding 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 Stocks Directory module to find actively traded stocks across global markets.