Correlation Between BIST Electricity and Gubre Fabrikalari
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By analyzing existing cross correlation between BIST Electricity and Gubre Fabrikalari TAS, you can compare the effects of market volatilities on BIST Electricity and Gubre Fabrikalari 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 Gubre Fabrikalari. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and Gubre Fabrikalari.
Diversification Opportunities for BIST Electricity and Gubre Fabrikalari
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIST and Gubre is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and Gubre Fabrikalari TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gubre Fabrikalari TAS 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 Gubre Fabrikalari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gubre Fabrikalari TAS has no effect on the direction of BIST Electricity i.e., BIST Electricity and Gubre Fabrikalari go up and down completely randomly.
Pair Corralation between BIST Electricity and Gubre Fabrikalari
Assuming the 90 days trading horizon BIST Electricity is expected to generate 7.5 times less return on investment than Gubre Fabrikalari. But when comparing it to its historical volatility, BIST Electricity is 2.0 times less risky than Gubre Fabrikalari. It trades about 0.05 of its potential returns per unit of risk. Gubre Fabrikalari TAS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 20,080 in Gubre Fabrikalari TAS on September 25, 2024 and sell it today you would earn a total of 7,795 from holding Gubre Fabrikalari TAS or generate 38.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BIST Electricity vs. Gubre Fabrikalari TAS
Performance |
Timeline |
BIST Electricity and Gubre Fabrikalari Volatility Contrast
Predicted Return Density |
Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
Gubre Fabrikalari TAS
Pair trading matchups for Gubre Fabrikalari
Pair Trading with BIST Electricity and Gubre Fabrikalari
The main advantage of trading using opposite BIST Electricity and Gubre Fabrikalari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, Gubre Fabrikalari 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 Gubre Fabrikalari will offset losses from the drop in Gubre Fabrikalari's long position.BIST Electricity vs. MEGA METAL | BIST Electricity vs. Mackolik Internet Hizmetleri | BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Bms Birlesik Metal |
Gubre Fabrikalari vs. Ege Endustri ve | Gubre Fabrikalari vs. Bosch Fren Sistemleri | Gubre Fabrikalari vs. Dogus Otomotiv Servis | Gubre Fabrikalari vs. Nuh Cimento Sanayi |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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