Correlation Between Bms Birlesik and Anatolia Tani
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Anatolia Tani 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 Bms Birlesik and Anatolia Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bms Birlesik Metal and Anatolia Tani ve, you can compare the effects of market volatilities on Bms Birlesik and Anatolia Tani 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 Bms Birlesik with a short position of Anatolia Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Anatolia Tani.
Diversification Opportunities for Bms Birlesik and Anatolia Tani
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bms and Anatolia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Anatolia Tani ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anatolia Tani ve and Bms 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 Bms Birlesik Metal are associated (or correlated) with Anatolia Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anatolia Tani ve has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Anatolia Tani go up and down completely randomly.
Pair Corralation between Bms Birlesik and Anatolia Tani
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 2.48 times more return on investment than Anatolia Tani. However, Bms Birlesik is 2.48 times more volatile than Anatolia Tani ve. It trades about 0.05 of its potential returns per unit of risk. Anatolia Tani ve is currently generating about 0.01 per unit of risk. If you would invest 815.00 in Bms Birlesik Metal on September 14, 2024 and sell it today you would earn a total of 2,163 from holding Bms Birlesik Metal or generate 265.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Anatolia Tani ve
Performance |
| Timeline |
| Bms Birlesik Metal |
| Anatolia Tani ve |
Bms Birlesik and Anatolia Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Anatolia Tani
The main advantage of trading using opposite Bms Birlesik and Anatolia Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Anatolia Tani 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 Anatolia Tani will offset losses from the drop in Anatolia Tani's long position.| Bms Birlesik vs. Qnb Finansbank AS | Bms Birlesik vs. Borlease Otomotiv AS | Bms Birlesik vs. Gentas Genel Metal | Bms Birlesik vs. Koza Anadolu Metal |
| Anatolia Tani vs. Bms Birlesik Metal | Anatolia Tani vs. Koza Anadolu Metal | Anatolia Tani vs. Politeknik Metal Sanayi | Anatolia Tani vs. Gentas Genel 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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