Correlation Between BIM Birlesik and Kartonsan Karton
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Kartonsan Karton 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 Kartonsan Karton 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 Kartonsan Karton Sanayi, you can compare the effects of market volatilities on BIM Birlesik and Kartonsan Karton 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 Kartonsan Karton. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Kartonsan Karton.
Diversification Opportunities for BIM Birlesik and Kartonsan Karton
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIM and Kartonsan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Kartonsan Karton Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartonsan Karton Sanayi 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 Kartonsan Karton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartonsan Karton Sanayi has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Kartonsan Karton go up and down completely randomly.
Pair Corralation between BIM Birlesik and Kartonsan Karton
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to under-perform the Kartonsan Karton. In addition to that, BIM Birlesik is 1.18 times more volatile than Kartonsan Karton Sanayi. It trades about -0.06 of its total potential returns per unit of risk. Kartonsan Karton Sanayi is currently generating about 0.01 per unit of volatility. If you would invest 8,750 in Kartonsan Karton Sanayi on August 29, 2024 and sell it today you would lose (40.00) from holding Kartonsan Karton Sanayi or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Kartonsan Karton Sanayi
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Kartonsan Karton Sanayi |
BIM Birlesik and Kartonsan Karton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Kartonsan Karton
The main advantage of trading using opposite BIM Birlesik and Kartonsan Karton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Kartonsan Karton 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 Kartonsan Karton will offset losses from the drop in Kartonsan Karton'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 |
| Kartonsan Karton vs. Ege Endustri ve | Kartonsan Karton vs. Otokar Otomotiv ve | Kartonsan Karton vs. BIM Birlesik Magazalar | Kartonsan Karton vs. Alkim Alkali Kimya |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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