Correlation Between BIM Birlesik and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on BIM Birlesik and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Ege Endustri.
Diversification Opportunities for BIM Birlesik and Ege Endustri
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIM and Ege is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Ege Endustri go up and down completely randomly.
Pair Corralation between BIM Birlesik and Ege Endustri
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to generate 1.02 times more return on investment than Ege Endustri. However, BIM Birlesik is 1.02 times more volatile than Ege Endustri ve. It trades about 0.04 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.04 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Ege Endustri ve
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Ege Endustri ve |
BIM Birlesik and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Ege Endustri
The main advantage of trading using opposite BIM Birlesik and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri'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 |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Eregli Demir ve | Ege Endustri vs. Turkiye Petrol Rafinerileri | Ege Endustri vs. Turkiye Sise 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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