Correlation Between Baticim Bati and Silverline Endustri

Can any of the company-specific risk be diversified away by investing in both Baticim Bati and Silverline Endustri 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 Baticim Bati and Silverline Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baticim Bati Anadolu and Silverline Endustri ve, you can compare the effects of market volatilities on Baticim Bati and Silverline Endustri 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 Baticim Bati with a short position of Silverline Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baticim Bati and Silverline Endustri.

Diversification Opportunities for Baticim Bati and Silverline Endustri

-0.1

Correlation Coefficient

Baticim Bati  Silverline Endustri

Good diversification

The 3 months correlation between Baticim and Silverline is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Baticim Bati Anadolu and Silverline Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silverline Endustri and Baticim Bati 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 Baticim Bati Anadolu are associated (or correlated) with Silverline Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silverline Endustri has no effect on the direction of Baticim Bati i.e., Baticim Bati and Silverline Endustri go up and down completely randomly.

Pair Corralation between Baticim Bati and Silverline Endustri

Assuming the 90 days trading horizon Baticim Bati Anadolu is expected to generate 0.99 times more return on investment than Silverline Endustri. However, Baticim Bati Anadolu is 1.01 times less risky than Silverline Endustri. It trades about 0.09 of its potential returns per unit of risk. Silverline Endustri ve is currently generating about 0.03 per unit of risk. If you would invest  3,914  in Baticim Bati Anadolu on September 24, 2024 and sell it today you would earn a total of  9,686  from holding Baticim Bati Anadolu or generate 247.47% return on investment over 90 days.

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

Baticim Bati Anadolu  vs.  Silverline Endustri ve

Baticim Bati Anadolu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baticim Bati Anadolu has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Silverline Endustri

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Baticim Bati and Silverline Endustri

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

The idea behind Baticim Bati Anadolu and Silverline Endustri 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.