Correlation Between Bayrak EBT and Yaprak Sut

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

Diversification Opportunities for Bayrak EBT and Yaprak Sut

-0.2

Correlation Coefficient

Bayrak EBT  Yaprak Sut

Good diversification

The 3 months correlation between Bayrak and Yaprak is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban and Yaprak Sut ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yaprak Sut ve 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 Yaprak Sut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yaprak Sut ve has no effect on the direction of Bayrak EBT i.e., Bayrak EBT and Yaprak Sut go up and down completely randomly.

Pair Corralation between Bayrak EBT and Yaprak Sut

Assuming the 90 days trading horizon Bayrak EBT Taban is expected to under-perform the Yaprak Sut. But the stock apears to be less risky and, when comparing its historical volatility, Bayrak EBT Taban is 1.83 times less risky than Yaprak Sut. The stock trades about -0.03 of its potential returns per unit of risk. The Yaprak Sut ve is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  39,625  in Yaprak Sut ve on September 26, 2024 and sell it today you would earn a total of  17,225  from holding Yaprak Sut ve or generate 43.47% return on investment over 90 days.

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

Bayrak EBT Taban  vs.  Yaprak Sut ve

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 fairly strong forward indicators, Bayrak EBT is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Yaprak Sut ve

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yaprak Sut ve are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yaprak Sut demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bayrak EBT and Yaprak Sut

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

The idea behind Bayrak EBT Taban and Yaprak Sut ve 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.