Correlation Between Nigbas Nigde and Girisim Elektrik

Can any of the company-specific risk be diversified away by investing in both Nigbas Nigde and Girisim Elektrik 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 Nigbas Nigde and Girisim Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nigbas Nigde Beton and Girisim Elektrik Taahhut, you can compare the effects of market volatilities on Nigbas Nigde and Girisim Elektrik 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 Nigbas Nigde with a short position of Girisim Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigbas Nigde and Girisim Elektrik.

Diversification Opportunities for Nigbas Nigde and Girisim Elektrik

-0.44

Correlation Coefficient

Nigbas Nigde  Girisim Elektrik

Very good diversification

The 3 months correlation between Nigbas and Girisim is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nigbas Nigde Beton and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut and Nigbas Nigde 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 Nigbas Nigde Beton are associated (or correlated) with Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Nigbas Nigde i.e., Nigbas Nigde and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Nigbas Nigde and Girisim Elektrik

Assuming the 90 days trading horizon Nigbas Nigde Beton is expected to under-perform the Girisim Elektrik. In addition to that, Nigbas Nigde is 1.03 times more volatile than Girisim Elektrik Taahhut. It trades about -0.05 of its total potential returns per unit of risk. Girisim Elektrik Taahhut is currently generating about 0.12 per unit of volatility. If you would invest  4,004  in Girisim Elektrik Taahhut on October 7, 2024 and sell it today you would earn a total of  906.00  from holding Girisim Elektrik Taahhut or generate 22.63% return on investment over 90 days.

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

Nigbas Nigde Beton  vs.  Girisim Elektrik Taahhut

Nigbas Nigde Beton

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nigbas Nigde Beton 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.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

9 of 100

OK

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

Pair Trading with Nigbas Nigde and Girisim Elektrik

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

The idea behind Nigbas Nigde Beton and Girisim Elektrik Taahhut 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.