Correlation Between RONESANS GAYRIMENKUL and Bayrak EBT

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

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

Diversification Opportunities for RONESANS GAYRIMENKUL and Bayrak EBT

-0.13

Correlation Coefficient

RONESANS GAYRIMENKUL  Bayrak EBT

Good diversification

The 3 months correlation between RONESANS and Bayrak is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding RONESANS GAYRIMENKUL YAT 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 RONESANS GAYRIMENKUL 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 RONESANS GAYRIMENKUL YAT 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 RONESANS GAYRIMENKUL i.e., RONESANS GAYRIMENKUL and Bayrak EBT go up and down completely randomly.

Pair Corralation between RONESANS GAYRIMENKUL and Bayrak EBT

Assuming the 90 days trading horizon RONESANS GAYRIMENKUL YAT is expected to generate 0.62 times more return on investment than Bayrak EBT. However, RONESANS GAYRIMENKUL YAT is 1.62 times less risky than Bayrak EBT. It trades about 0.14 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about -0.01 per unit of risk. If you would invest  10,900  in RONESANS GAYRIMENKUL YAT on October 6, 2024 and sell it today you would earn a total of  1,750  from holding RONESANS GAYRIMENKUL YAT or generate 16.06% return on investment over 90 days.

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

RONESANS GAYRIMENKUL YAT  vs.  Bayrak EBT Taban

RONESANS GAYRIMENKUL YAT

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RONESANS GAYRIMENKUL YAT are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, RONESANS GAYRIMENKUL demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 fairly strong forward indicators, Bayrak EBT is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with RONESANS GAYRIMENKUL and Bayrak EBT

The main advantage of trading using opposite RONESANS GAYRIMENKUL and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RONESANS GAYRIMENKUL 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 RONESANS GAYRIMENKUL YAT 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.