Correlation Between BIST Electricity and Euro Trend
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By analyzing existing cross correlation between BIST Electricity and Euro Trend Yatirim, you can compare the effects of market volatilities on BIST Electricity and Euro Trend 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 BIST Electricity with a short position of Euro Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Euro Trend.
Diversification Opportunities for BIST Electricity and Euro Trend
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BIST and Euro is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Euro Trend Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Trend Yatirim and BIST Electricity 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 BIST Electricity are associated (or correlated) with Euro Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Trend Yatirim has no effect on the direction of BIST Electricity i.e., BIST Electricity and Euro Trend go up and down completely randomly.
Pair Corralation between BIST Electricity and Euro Trend
Assuming the 90 days trading horizon BIST Electricity is expected to generate 2.25 times less return on investment than Euro Trend. But when comparing it to its historical volatility, BIST Electricity is 3.0 times less risky than Euro Trend. It trades about 0.14 of its potential returns per unit of risk. Euro Trend Yatirim is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Euro Trend Yatirim on September 24, 2024 and sell it today you would earn a total of 60.00 from holding Euro Trend Yatirim or generate 5.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BIST Electricity vs. Euro Trend Yatirim
Performance |
Timeline |
BIST Electricity and Euro Trend Volatility Contrast
Predicted Return Density |
Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Euro Trend Yatirim
Pair trading matchups for Euro Trend
Pair Trading with BIST Electricity and Euro Trend
The main advantage of trading using opposite BIST Electricity and Euro Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Euro Trend 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 Euro Trend will offset losses from the drop in Euro Trend's long position.BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Bms Birlesik Metal | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. Koza Anadolu Metal |
Euro Trend vs. Cuhadaroglu Metal Sanayi | Euro Trend vs. Gentas Genel Metal | Euro Trend vs. Galatasaray Sportif Sinai | Euro Trend vs. Qnb Finansbank AS |
Check out your portfolio center.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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