Correlation Between BIST Electricity and KL Technology
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By analyzing existing cross correlation between BIST Electricity and KL Technology, you can compare the effects of market volatilities on BIST Electricity and KL Technology 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 KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and KL Technology.
Diversification Opportunities for BIST Electricity and KL Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BIST and KLTE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology 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 KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of BIST Electricity i.e., BIST Electricity and KL Technology go up and down completely randomly.
Pair Corralation between BIST Electricity and KL Technology
Assuming the 90 days trading horizon BIST Electricity is expected to generate 2.13 times more return on investment than KL Technology. However, BIST Electricity is 2.13 times more volatile than KL Technology. It trades about 0.22 of its potential returns per unit of risk. KL Technology is currently generating about 0.04 per unit of risk. If you would invest 55,221 in BIST Electricity on February 1, 2024 and sell it today you would earn a total of 4,128 from holding BIST Electricity or generate 7.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
BIST Electricity vs. KL Technology
Performance |
Timeline |
BIST Electricity and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
KL Technology
Pair trading matchups for KL Technology
Pair Trading with BIST Electricity and KL Technology
The main advantage of trading using opposite BIST Electricity and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Akbank TAS |
KL Technology vs. Public Bank Bhd | KL Technology vs. Hong Leong Bank | KL Technology vs. Sports Toto Berhad | KL Technology vs. Apollo Food Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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