Correlation Between BIST Electricity and BEL Small
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By analyzing existing cross correlation between BIST Electricity and BEL Small, you can compare the effects of market volatilities on BIST Electricity and BEL Small 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 BIST Electricity with a short position of BEL Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and BEL Small.
Diversification Opportunities for BIST Electricity and BEL Small
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIST and BEL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and BEL Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEL Small and BIST Electricity 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 BIST Electricity are associated (or correlated) with BEL Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEL Small has no effect on the direction of BIST Electricity i.e., BIST Electricity and BEL Small go up and down completely randomly.
Pair Corralation between BIST Electricity and BEL Small
Assuming the 90 days trading horizon BIST Electricity is expected to generate 1.97 times more return on investment than BEL Small. However, BIST Electricity is 1.97 times more volatile than BEL Small. It trades about 0.05 of its potential returns per unit of risk. BEL Small is currently generating about 0.06 per unit of risk. If you would invest 57,793 in BIST Electricity on February 1, 2024 and sell it today you would earn a total of 1,556 from holding BIST Electricity or generate 2.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
BIST Electricity vs. BEL Small
Performance |
Timeline |
BIST Electricity and BEL Small Volatility Contrast
Predicted Return Density |
Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
BEL Small
Pair trading matchups for BEL Small
Pair Trading with BIST Electricity and BEL Small
The main advantage of trading using opposite BIST Electricity and BEL Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, BEL Small 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 BEL Small will offset losses from the drop in BEL Small's long position.BIST Electricity vs. Akbank TAS | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. ICBC Turkey Bank |
BEL Small vs. Keyware Technologies NV | BEL Small vs. Vastned Retail Belgium | BEL Small vs. EVS Broadcast Equipment | BEL Small vs. Shurgard Self Storage |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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