Correlation Between Platform Turizm and Bera Holding

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

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

Diversification Opportunities for Platform Turizm and Bera Holding

0.91

Correlation Coefficient

Platform Turizm  Bera Holding

Almost no diversification

The 3 months correlation between Platform and Bera is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Platform Turizm Tasimacilik 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 Platform Turizm 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 Platform Turizm Tasimacilik 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 Platform Turizm i.e., Platform Turizm and Bera Holding go up and down completely randomly.

Pair Corralation between Platform Turizm and Bera Holding

Assuming the 90 days trading horizon Platform Turizm Tasimacilik is expected to generate 1.02 times more return on investment than Bera Holding. However, Platform Turizm is 1.02 times more volatile than Bera Holding AS. It trades about 0.06 of its potential returns per unit of risk. Bera Holding AS is currently generating about 0.03 per unit of risk. If you would invest  1,510  in Platform Turizm Tasimacilik on October 12, 2024 and sell it today you would earn a total of  1,832  from holding Platform Turizm Tasimacilik or generate 121.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.19%
Values	Daily Returns

Platform Turizm Tasimacilik  vs.  Bera Holding AS

Platform Turizm Tasi

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Platform Turizm Tasimacilik are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Platform Turizm demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Bera Holding AS

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bera Holding AS are ranked lower than 14 (%) 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 Platform Turizm and Bera Holding

The main advantage of trading using opposite Platform Turizm and Bera Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platform Turizm 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 Platform Turizm Tasimacilik 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.