Correlation Between Sekerbank TAS and Beyaz Filo

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

By analyzing existing cross correlation between Sekerbank TAS and Beyaz Filo Oto, you can compare the effects of market volatilities on Sekerbank TAS and Beyaz Filo 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 Beyaz Filo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Beyaz Filo.

Diversification Opportunities for Sekerbank TAS and Beyaz Filo

0.75

Correlation Coefficient

Sekerbank TAS  Beyaz Filo

Poor diversification

The 3 months correlation between Sekerbank and Beyaz is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Beyaz Filo Oto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyaz Filo Oto 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 Beyaz Filo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyaz Filo Oto has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Beyaz Filo go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Beyaz Filo

Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.12 times more return on investment than Beyaz Filo. However, Sekerbank TAS is 1.12 times more volatile than Beyaz Filo Oto. It trades about 0.21 of its potential returns per unit of risk. Beyaz Filo Oto is currently generating about 0.23 per unit of risk. If you would invest  427.00  in Sekerbank TAS on September 23, 2024 and sell it today you would earn a total of  55.00  from holding Sekerbank TAS or generate 12.88% return on investment over 90 days.

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

Sekerbank TAS  vs.  Beyaz Filo Oto

Sekerbank TAS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Sekerbank TAS is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Beyaz Filo Oto

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beyaz Filo Oto are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Beyaz Filo may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Sekerbank TAS and Beyaz Filo

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

The idea behind Sekerbank TAS and Beyaz Filo Oto 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.