Correlation Between Cboe UK and BIST Electricity
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By analyzing existing cross correlation between Cboe UK Consumer and BIST Electricity, you can compare the effects of market volatilities on Cboe UK and BIST Electricity 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 Cboe UK with a short position of BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and BIST Electricity.
Diversification Opportunities for Cboe UK and BIST Electricity
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cboe and BIST is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of Cboe UK i.e., Cboe UK and BIST Electricity go up and down completely randomly.
Pair Corralation between Cboe UK and BIST Electricity
Assuming the 90 days trading horizon Cboe UK Consumer is expected to under-perform the BIST Electricity. But the index apears to be less risky and, when comparing its historical volatility, Cboe UK Consumer is 2.66 times less risky than BIST Electricity. The index trades about -0.14 of its potential returns per unit of risk. The BIST Electricity is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 55,221 in BIST Electricity on January 30, 2024 and sell it today you would earn a total of 5,310 from holding BIST Electricity or generate 9.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 85.0% |
Values | Daily Returns |
Cboe UK Consumer vs. BIST Electricity
Performance |
Timeline |
Cboe UK and BIST Electricity Volatility Contrast
Predicted Return Density |
Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with Cboe UK and BIST Electricity
The main advantage of trading using opposite Cboe UK and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, BIST Electricity 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 BIST Electricity will offset losses from the drop in BIST Electricity's long position.Cboe UK vs. Tata Steel Limited | Cboe UK vs. Hilton Food Group | Cboe UK vs. Edita Food Industries | Cboe UK vs. Impax Environmental Markets |
BIST Electricity vs. Bms Birlesik Metal | BIST Electricity vs. Politeknik Metal Sanayi | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. E Data Teknoloji Pazarlama |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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