Correlation Between Penta Teknoloji and Besiktas Futbol

Can any of the company-specific risk be diversified away by investing in both Penta Teknoloji and Besiktas Futbol 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 Penta Teknoloji and Besiktas Futbol into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Penta Teknoloji Urunleri and Besiktas Futbol Yatirimlari, you can compare the effects of market volatilities on Penta Teknoloji and Besiktas Futbol 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 Penta Teknoloji with a short position of Besiktas Futbol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penta Teknoloji and Besiktas Futbol.

Diversification Opportunities for Penta Teknoloji and Besiktas Futbol

-0.15

Correlation Coefficient

Penta Teknoloji  Besiktas Futbol

Good diversification

The 3 months correlation between Penta and Besiktas is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Penta Teknoloji Urunleri and Besiktas Futbol Yatirimlari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Besiktas Futbol Yati and Penta Teknoloji 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 Penta Teknoloji Urunleri are associated (or correlated) with Besiktas Futbol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Besiktas Futbol Yati has no effect on the direction of Penta Teknoloji i.e., Penta Teknoloji and Besiktas Futbol go up and down completely randomly.

Pair Corralation between Penta Teknoloji and Besiktas Futbol

Assuming the 90 days trading horizon Penta Teknoloji Urunleri is expected to generate 0.74 times more return on investment than Besiktas Futbol. However, Penta Teknoloji Urunleri is 1.35 times less risky than Besiktas Futbol. It trades about 0.03 of its potential returns per unit of risk. Besiktas Futbol Yatirimlari is currently generating about -0.16 per unit of risk. If you would invest  1,505  in Penta Teknoloji Urunleri on September 22, 2024 and sell it today you would earn a total of  40.00  from holding Penta Teknoloji Urunleri or generate 2.66% return on investment over 90 days.

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

Penta Teknoloji Urunleri  vs.  Besiktas Futbol Yatirimlari

Penta Teknoloji Urunleri

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penta Teknoloji Urunleri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Penta Teknoloji is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Besiktas Futbol Yati

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Besiktas Futbol Yatirimlari 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.

Pair Trading with Penta Teknoloji and Besiktas Futbol

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

The idea behind Penta Teknoloji Urunleri and Besiktas Futbol Yatirimlari 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.