Correlation Between BIM Birlesik and Arcelik AS
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Arcelik AS 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 Arcelik AS 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 Arcelik AS, you can compare the effects of market volatilities on BIM Birlesik and Arcelik AS 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 Arcelik AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Arcelik AS.
Diversification Opportunities for BIM Birlesik and Arcelik AS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BIM and Arcelik is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Arcelik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelik AS 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 Arcelik AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelik AS has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Arcelik AS go up and down completely randomly.
Pair Corralation between BIM Birlesik and Arcelik AS
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to generate 1.04 times more return on investment than Arcelik AS. However, BIM Birlesik is 1.04 times more volatile than Arcelik AS. It trades about 0.08 of its potential returns per unit of risk. Arcelik AS is currently generating about -0.03 per unit of risk. If you would invest 36,679 in BIM Birlesik Magazalar on November 3, 2024 and sell it today you would earn a total of 18,321 from holding BIM Birlesik Magazalar or generate 49.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Arcelik AS
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Arcelik AS |
BIM Birlesik and Arcelik AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Arcelik AS
The main advantage of trading using opposite BIM Birlesik and Arcelik AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Arcelik AS 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 Arcelik AS will offset losses from the drop in Arcelik AS'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 |
| Arcelik AS vs. Turkiye Sise ve | Arcelik AS vs. Turkiye Petrol Rafinerileri | Arcelik AS vs. Tofas Turk Otomobil | Arcelik AS vs. Eregli Demir ve |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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