Correlation Between Sekerbank TAS and Bayrak EBT

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

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

Diversification Opportunities for Sekerbank TAS and Bayrak EBT

-0.12

Correlation Coefficient

Sekerbank TAS  Bayrak EBT

Good diversification

The 3 months correlation between Sekerbank and Bayrak is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS i.e., Sekerbank TAS and Bayrak EBT go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Bayrak EBT

Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.09 times more return on investment than Bayrak EBT. However, Sekerbank TAS is 1.09 times more volatile than Bayrak EBT Taban. It trades about 0.07 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  408.00  in Sekerbank TAS on October 23, 2024 and sell it today you would earn a total of  37.00  from holding Sekerbank TAS or generate 9.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Sekerbank TAS  vs.  Bayrak EBT Taban

Sekerbank TAS

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Sekerbank TAS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Bayrak EBT Taban

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bayrak EBT Taban are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Bayrak EBT is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sekerbank TAS and Bayrak EBT

The main advantage of trading using opposite Sekerbank TAS and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS 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 Sekerbank TAS 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.