Correlation Between Bayrak EBT and Cemtas Celik

Can any of the company-specific risk be diversified away by investing in both Bayrak EBT and Cemtas Celik 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 Cemtas Celik 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 Cemtas Celik Makina, you can compare the effects of market volatilities on Bayrak EBT and Cemtas Celik 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 Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and Cemtas Celik.

Diversification Opportunities for Bayrak EBT and Cemtas Celik

0.44

Correlation Coefficient

Bayrak EBT  Cemtas Celik

Very weak diversification

The 3 months correlation between Bayrak and Cemtas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina 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 Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Cemtas Celik go up and down completely randomly.

Pair Corralation between Bayrak EBT and Cemtas Celik

Assuming the 90 days trading horizon Bayrak EBT Taban is expected to under-perform the Cemtas Celik. In addition to that, Bayrak EBT is 1.81 times more volatile than Cemtas Celik Makina. It trades about -0.06 of its total potential returns per unit of risk. Cemtas Celik Makina is currently generating about -0.06 per unit of volatility. If you would invest  960.00  in Cemtas Celik Makina on September 23, 2024 and sell it today you would lose (67.00) from holding Cemtas Celik Makina or give up 6.98% of portfolio value over 90 days.

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

Bayrak EBT Taban  vs.  Cemtas Celik Makina

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.

Cemtas Celik Makina

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cemtas Celik Makina has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Cemtas Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bayrak EBT and Cemtas Celik

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

The idea behind Bayrak EBT Taban and Cemtas Celik Makina 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.