Correlation Between BIM Birlesik and Pamel Yenilenebilir
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Pamel Yenilenebilir 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 Pamel Yenilenebilir 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 Pamel Yenilenebilir Elektrik, you can compare the effects of market volatilities on BIM Birlesik and Pamel Yenilenebilir 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 Pamel Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Pamel Yenilenebilir.
Diversification Opportunities for BIM Birlesik and Pamel Yenilenebilir
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIM and Pamel is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir 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 Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Pamel Yenilenebilir go up and down completely randomly.
Pair Corralation between BIM Birlesik and Pamel Yenilenebilir
Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to generate 0.71 times more return on investment than Pamel Yenilenebilir. However, BIM Birlesik Magazalar is 1.4 times less risky than Pamel Yenilenebilir. It trades about 0.12 of its potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about -0.04 per unit of risk. If you would invest 12,704 in BIM Birlesik Magazalar on September 3, 2024 and sell it today you would earn a total of 34,646 from holding BIM Birlesik Magazalar or generate 272.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIM Birlesik Magazalar vs. Pamel Yenilenebilir Elektrik
Performance |
| Timeline |
| BIM Birlesik Magazalar |
| Pamel Yenilenebilir |
BIM Birlesik and Pamel Yenilenebilir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIM Birlesik and Pamel Yenilenebilir
The main advantage of trading using opposite BIM Birlesik and Pamel Yenilenebilir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Pamel Yenilenebilir 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 Pamel Yenilenebilir will offset losses from the drop in Pamel Yenilenebilir's long position.| BIM Birlesik vs. Pamel Yenilenebilir Elektrik | BIM Birlesik vs. Yesil Yatirim Holding | BIM Birlesik vs. Kent Gida Maddeleri | BIM Birlesik vs. Ekiz Kimya Sanayi |
| Pamel Yenilenebilir vs. Koza Anadolu Metal | Pamel Yenilenebilir vs. Galatasaray Sportif Sinai | Pamel Yenilenebilir vs. Politeknik Metal Sanayi | Pamel Yenilenebilir vs. MEGA METAL |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |