Correlation Between Bera Holding and Indeks Bilgisayar

Can any of the company-specific risk be diversified away by investing in both Bera Holding and Indeks Bilgisayar 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 Bera Holding and Indeks Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bera Holding AS and Indeks Bilgisayar Sistemleri, you can compare the effects of market volatilities on Bera Holding and Indeks Bilgisayar 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 Bera Holding with a short position of Indeks Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bera Holding and Indeks Bilgisayar.

Diversification Opportunities for Bera Holding and Indeks Bilgisayar

0.91

Correlation Coefficient

Bera Holding  Indeks Bilgisayar

Almost no diversification

The 3 months correlation between Bera and Indeks is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bera Holding AS and Indeks Bilgisayar Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indeks Bilgisayar and Bera Holding 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 Bera Holding AS are associated (or correlated) with Indeks Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indeks Bilgisayar has no effect on the direction of Bera Holding i.e., Bera Holding and Indeks Bilgisayar go up and down completely randomly.

Pair Corralation between Bera Holding and Indeks Bilgisayar

Assuming the 90 days trading horizon Bera Holding AS is expected to generate 1.29 times more return on investment than Indeks Bilgisayar. However, Bera Holding is 1.29 times more volatile than Indeks Bilgisayar Sistemleri. It trades about 0.03 of its potential returns per unit of risk. Indeks Bilgisayar Sistemleri is currently generating about -0.03 per unit of risk. If you would invest  1,550  in Bera Holding AS on September 5, 2024 and sell it today you would earn a total of  38.00  from holding Bera Holding AS or generate 2.45% return on investment over 90 days.

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

Bera Holding AS  vs.  Indeks Bilgisayar Sistemleri

Bera Holding AS

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bera Holding AS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Bera Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Indeks Bilgisayar

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bera Holding and Indeks Bilgisayar

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

The idea behind Bera Holding AS and Indeks Bilgisayar Sistemleri 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.