Correlation Between Prizma Pres and Birlik Mensucat

Can any of the company-specific risk be diversified away by investing in both Prizma Pres and Birlik Mensucat 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 Prizma Pres and Birlik Mensucat into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Prizma Pres Matbaacilik and Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Prizma Pres and Birlik Mensucat 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 Prizma Pres with a short position of Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prizma Pres and Birlik Mensucat.

Diversification Opportunities for Prizma Pres and Birlik Mensucat

-0.27

Correlation Coefficient

Prizma Pres  Birlik Mensucat

Very good diversification

The 3 months correlation between Prizma and Birlik is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Prizma Pres Matbaacilik and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret and Prizma Pres 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 Prizma Pres Matbaacilik are associated (or correlated) with Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Prizma Pres i.e., Prizma Pres and Birlik Mensucat go up and down completely randomly.

Pair Corralation between Prizma Pres and Birlik Mensucat

Assuming the 90 days trading horizon Prizma Pres Matbaacilik is expected to generate 1.06 times more return on investment than Birlik Mensucat. However, Prizma Pres is 1.06 times more volatile than Birlik Mensucat Ticaret. It trades about 0.18 of its potential returns per unit of risk. Birlik Mensucat Ticaret is currently generating about -0.04 per unit of risk. If you would invest  697.00  in Prizma Pres Matbaacilik on December 24, 2024 and sell it today you would earn a total of  238.00  from holding Prizma Pres Matbaacilik or generate 34.15% return on investment over 90 days.

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

Prizma Pres Matbaacilik  vs.  Birlik Mensucat Ticaret

Prizma Pres Matbaacilik

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Prizma Pres Matbaacilik are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Prizma Pres demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Birlik Mensucat Ticaret

Risk-Adjusted Performance

Very Weak

Over the last 90 days Birlik Mensucat Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Birlik Mensucat is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Prizma Pres and Birlik Mensucat

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

The idea behind Prizma Pres Matbaacilik and Birlik Mensucat Ticaret 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.