Correlation Between Penguen Gida and Bayrak EBT

Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Bayrak EBT 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 Penguen Gida and Bayrak EBT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Penguen Gida Sanayi and Bayrak EBT Taban, you can compare the effects of market volatilities on Penguen Gida and Bayrak EBT 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 Penguen Gida with a short position of Bayrak EBT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Bayrak EBT.

Diversification Opportunities for Penguen Gida and Bayrak EBT

0.07

Correlation Coefficient

Penguen Gida  Bayrak EBT

Significant diversification

The 3 months correlation between Penguen and Bayrak is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Bayrak EBT Taban in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayrak EBT Taban and Penguen Gida 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 Penguen Gida Sanayi are associated (or correlated) with Bayrak EBT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayrak EBT Taban has no effect on the direction of Penguen Gida i.e., Penguen Gida and Bayrak EBT go up and down completely randomly.

Pair Corralation between Penguen Gida and Bayrak EBT

Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to generate 0.5 times more return on investment than Bayrak EBT. However, Penguen Gida Sanayi is 2.01 times less risky than Bayrak EBT. It trades about -0.04 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about -0.18 per unit of risk. If you would invest  795.00  in Penguen Gida Sanayi on September 23, 2024 and sell it today you would lose (113.00) from holding Penguen Gida Sanayi or give up 14.21% of portfolio value over 90 days.

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

Penguen Gida Sanayi  vs.  Bayrak EBT Taban

Penguen Gida Sanayi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Penguen Gida is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Bayrak EBT Taban

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bayrak EBT Taban has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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 Penguen Gida and Bayrak EBT

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

The idea behind Penguen Gida Sanayi and Bayrak EBT Taban 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.