Correlation Between Penguen Gida and Bera Holding

Can any of the company-specific risk be diversified away by investing in both Penguen Gida 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 Penguen Gida and Bera Holding 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 Bera Holding AS, you can compare the effects of market volatilities on Penguen Gida 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 Penguen Gida with a short position of Bera Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Bera Holding.

Diversification Opportunities for Penguen Gida and Bera Holding

0.84

Correlation Coefficient

Penguen Gida  Bera Holding

Very poor diversification

The 3 months correlation between Penguen and Bera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida 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 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 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 Penguen Gida i.e., Penguen Gida and Bera Holding go up and down completely randomly.

Pair Corralation between Penguen Gida and Bera Holding

Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to under-perform the Bera Holding. But the stock apears to be less risky and, when comparing its historical volatility, Penguen Gida Sanayi is 1.1 times less risky than Bera Holding. The stock trades about 0.0 of its potential returns per unit of risk. The Bera Holding AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,469  in Bera Holding AS on September 24, 2024 and sell it today you would earn a total of  14.00  from holding Bera Holding AS or generate 0.95% return on investment over 90 days.

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

Penguen Gida Sanayi  vs.  Bera Holding AS

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.

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 Penguen Gida and Bera Holding

The main advantage of trading using opposite Penguen Gida and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguen Gida 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 Penguen Gida 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.