Correlation Between BIM Birlesik and Logo Yazilim
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Logo Yazilim 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 Logo Yazilim 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 Logo Yazilim Sanayi, you can compare the effects of market volatilities on BIM Birlesik and Logo Yazilim 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 Logo Yazilim. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Logo Yazilim.
Diversification Opportunities for BIM Birlesik and Logo Yazilim
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIM and Logo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Logo Yazilim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logo Yazilim 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 Logo Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logo Yazilim Sanayi has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Logo Yazilim go up and down completely randomly.
Pair Corralation between BIM Birlesik and Logo Yazilim
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to generate 0.62 times more return on investment than Logo Yazilim. However, BIM Birlesik Magazalar is 1.62 times less risky than Logo Yazilim. It trades about 0.15 of its potential returns per unit of risk. Logo Yazilim Sanayi is currently generating about 0.03 per unit of risk. If you would invest 49,813 in BIM Birlesik Magazalar on November 3, 2024 and sell it today you would earn a total of 5,187 from holding BIM Birlesik Magazalar or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Logo Yazilim Sanayi
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Logo Yazilim Sanayi |
BIM Birlesik and Logo Yazilim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Logo Yazilim
The main advantage of trading using opposite BIM Birlesik and Logo Yazilim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Logo Yazilim 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 Logo Yazilim will offset losses from the drop in Logo Yazilim'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 |
| Logo Yazilim vs. BIM Birlesik Magazalar | Logo Yazilim vs. Ford Otomotiv Sanayi | Logo Yazilim vs. Tofas Turk Otomobil | Logo Yazilim vs. Arcelik AS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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