Correlation Between Sok Marketler and Bayrak EBT

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

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

Diversification Opportunities for Sok Marketler and Bayrak EBT

-0.13

Correlation Coefficient

Sok Marketler  Bayrak EBT

Good diversification

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

Pair Corralation between Sok Marketler and Bayrak EBT

Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the Bayrak EBT. But the stock apears to be less risky and, when comparing its historical volatility, Sok Marketler Ticaret is 1.73 times less risky than Bayrak EBT. The stock trades about -0.03 of its potential returns per unit of risk. The Bayrak EBT Taban is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,668  in Bayrak EBT Taban on October 15, 2024 and sell it today you would earn a total of  113.00  from holding Bayrak EBT Taban or generate 6.77% return on investment over 90 days.

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

Sok Marketler Ticaret  vs.  Bayrak EBT Taban

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sok Marketler is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Bayrak EBT Taban

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bayrak EBT Taban are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bayrak EBT may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sok Marketler and Bayrak EBT

The main advantage of trading using opposite Sok Marketler and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sok Marketler 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 Sok Marketler Ticaret 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.