Correlation Between Nuh Cimento and Bera Holding

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

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

Diversification Opportunities for Nuh Cimento and Bera Holding

-0.36

Correlation Coefficient

Nuh Cimento  Bera Holding

Very good diversification

The 3 months correlation between Nuh and Bera is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi 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 Nuh Cimento 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 Nuh Cimento Sanayi 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 Nuh Cimento i.e., Nuh Cimento and Bera Holding go up and down completely randomly.

Pair Corralation between Nuh Cimento and Bera Holding

Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to under-perform the Bera Holding. But the stock apears to be less risky and, when comparing its historical volatility, Nuh Cimento Sanayi is 1.32 times less risky than Bera Holding. The stock trades about -0.04 of its potential returns per unit of risk. The Bera Holding AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,470  in Bera Holding AS on December 26, 2024 and sell it today you would earn a total of  165.00  from holding Bera Holding AS or generate 11.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Nuh Cimento Sanayi  vs.  Bera Holding AS

Nuh Cimento Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuh Cimento Sanayi 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.

Bera Holding AS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bera Holding AS are ranked lower than 5 (%) 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 Nuh Cimento and Bera Holding

The main advantage of trading using opposite Nuh Cimento and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuh Cimento 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 Nuh Cimento Sanayi 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.