Correlation Between Bayrak EBT and Alkim Kagit

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

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

Diversification Opportunities for Bayrak EBT and Alkim Kagit

0.09

Correlation Coefficient

Bayrak EBT  Alkim Kagit

Significant diversification

The 3 months correlation between Bayrak and Alkim is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Bayrak EBT 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 Bayrak EBT Taban are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Alkim Kagit go up and down completely randomly.

Pair Corralation between Bayrak EBT and Alkim Kagit

Assuming the 90 days trading horizon Bayrak EBT Taban is expected to under-perform the Alkim Kagit. In addition to that, Bayrak EBT is 1.08 times more volatile than Alkim Kagit Sanayi. It trades about -0.06 of its total potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.13 per unit of volatility. If you would invest  678.00  in Alkim Kagit Sanayi on September 23, 2024 and sell it today you would earn a total of  162.00  from holding Alkim Kagit Sanayi or generate 23.89% return on investment over 90 days.

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

Bayrak EBT Taban  vs.  Alkim Kagit Sanayi

Bayrak EBT Taban

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bayrak EBT Taban has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Alkim Kagit Sanayi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Alkim Kagit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bayrak EBT and Alkim Kagit

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

The idea behind Bayrak EBT Taban and Alkim Kagit Sanayi 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.