Correlation Between BIM Birlesik and Migros Ticaret
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Migros Ticaret 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 Migros Ticaret 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 Migros Ticaret AS, you can compare the effects of market volatilities on BIM Birlesik and Migros Ticaret 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 Migros Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Migros Ticaret.
Diversification Opportunities for BIM Birlesik and Migros Ticaret
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIM and Migros is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Migros Ticaret AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migros Ticaret 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 Migros Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migros Ticaret AS has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Migros Ticaret go up and down completely randomly.
Pair Corralation between BIM Birlesik and Migros Ticaret
Assuming the 90 days trading horizon BIM Birlesik is expected to generate 6.95 times less return on investment than Migros Ticaret. But when comparing it to its historical volatility, BIM Birlesik Magazalar is 1.17 times less risky than Migros Ticaret. It trades about 0.05 of its potential returns per unit of risk. Migros Ticaret AS is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 41,311 in Migros Ticaret AS on September 2, 2024 and sell it today you would earn a total of 7,014 from holding Migros Ticaret AS or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Migros Ticaret AS
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Migros Ticaret AS |
BIM Birlesik and Migros Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Migros Ticaret
The main advantage of trading using opposite BIM Birlesik and Migros Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Migros Ticaret 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 Migros Ticaret will offset losses from the drop in Migros Ticaret'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 |
| Migros Ticaret vs. Eregli Demir ve | Migros Ticaret vs. Turkiye Petrol Rafinerileri | Migros Ticaret vs. Turkiye Sise ve | Migros Ticaret vs. Ford Otomotiv Sanayi |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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