Correlation Between Nuh Cimento and Bogazici Beton

Can any of the company-specific risk be diversified away by investing in both Nuh Cimento and Bogazici Beton 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 Nuh Cimento and Bogazici Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuh Cimento Sanayi and Bogazici Beton Sanayi, you can compare the effects of market volatilities on Nuh Cimento and Bogazici Beton 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 Nuh Cimento with a short position of Bogazici Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Bogazici Beton.

Diversification Opportunities for Nuh Cimento and Bogazici Beton

0.0

Correlation Coefficient

Nuh Cimento  Bogazici Beton

Pay attention - limited upside

The 3 months correlation between Nuh and Bogazici is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Bogazici Beton Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogazici Beton Sanayi and Nuh Cimento 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 Nuh Cimento Sanayi are associated (or correlated) with Bogazici Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogazici Beton Sanayi has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Bogazici Beton go up and down completely randomly.

Pair Corralation between Nuh Cimento and Bogazici Beton

If you would invest (100.00) in Bogazici Beton Sanayi on March 11, 2024 and sell it today you would earn a total of  100.00  from holding Bogazici Beton Sanayi or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nuh Cimento Sanayi  vs.  Bogazici Beton Sanayi

Nuh Cimento Sanayi

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Nuh Cimento Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in July 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Bogazici Beton Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nuh Cimento and Bogazici Beton

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

The idea behind Nuh Cimento Sanayi and Bogazici Beton Sanayi 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.