Correlation Between Alkim Alkali and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both Alkim Alkali and BIM Birlesik 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 Alkim Alkali and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Alkali Kimya and BIM Birlesik Magazalar, you can compare the effects of market volatilities on Alkim Alkali and BIM Birlesik 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 Alkim Alkali with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Alkali and BIM Birlesik.
Diversification Opportunities for Alkim Alkali and BIM Birlesik
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and BIM is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Alkali Kimya and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar and Alkim Alkali 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 Alkim Alkali Kimya are associated (or correlated) with BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Alkim Alkali i.e., Alkim Alkali and BIM Birlesik go up and down completely randomly.
Pair Corralation between Alkim Alkali and BIM Birlesik
Assuming the 90 days trading horizon Alkim Alkali Kimya is expected to generate 0.78 times more return on investment than BIM Birlesik. However, Alkim Alkali Kimya is 1.29 times less risky than BIM Birlesik. It trades about 0.03 of its potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about -0.05 per unit of risk. If you would invest 3,256 in Alkim Alkali Kimya on August 29, 2024 and sell it today you would earn a total of 80.00 from holding Alkim Alkali Kimya or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Alkali Kimya vs. BIM Birlesik Magazalar
Performance |
| Timeline |
| Alkim Alkali Kimya |
| BIM Birlesik Magazalar |
Alkim Alkali and BIM Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Alkali and BIM Birlesik
The main advantage of trading using opposite Alkim Alkali and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Alkali position performs unexpectedly, BIM Birlesik 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 BIM Birlesik will offset losses from the drop in BIM Birlesik's long position.| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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