Correlation Between BIM Birlesik and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Alkim Alkali 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 BIM Birlesik and Alkim Alkali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIM Birlesik Magazalar and Alkim Alkali Kimya, you can compare the effects of market volatilities on BIM Birlesik and Alkim Alkali 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 BIM Birlesik with a short position of Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Alkim Alkali.
Diversification Opportunities for BIM Birlesik and Alkim Alkali
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIM and Alkim is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Alkim Alkali Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Alkali Kimya and BIM Birlesik 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 BIM Birlesik Magazalar are associated (or correlated) with Alkim Alkali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Alkali Kimya has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Alkim Alkali go up and down completely randomly.
Pair Corralation between BIM Birlesik and Alkim Alkali
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to generate 1.29 times more return on investment than Alkim Alkali. However, BIM Birlesik is 1.29 times more volatile than Alkim Alkali Kimya. It trades about 0.04 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about 0.05 per unit of risk. If you would invest 46,650 in BIM Birlesik Magazalar on September 1, 2024 and sell it today you would earn a total of 700.00 from holding BIM Birlesik Magazalar or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Alkim Alkali Kimya
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Alkim Alkali Kimya |
BIM Birlesik and Alkim Alkali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Alkim Alkali
The main advantage of trading using opposite BIM Birlesik and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Alkim Alkali 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 Alkim Alkali will offset losses from the drop in Alkim Alkali's long position.| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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