Correlation Between Bms Birlesik and Atlas Menkul
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Atlas Menkul 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 Atlas Menkul 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 Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Bms Birlesik and Atlas Menkul 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 Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Atlas Menkul.
Diversification Opportunities for Bms Birlesik and Atlas Menkul
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bms and Atlas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler 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 Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Atlas Menkul go up and down completely randomly.
Pair Corralation between Bms Birlesik and Atlas Menkul
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 3.88 times more return on investment than Atlas Menkul. However, Bms Birlesik is 3.88 times more volatile than Atlas Menkul Kiymetler. It trades about 0.05 of its potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about 0.06 per unit of risk. If you would invest 813.00 in Bms Birlesik Metal on September 2, 2024 and sell it today you would earn a total of 2,037 from holding Bms Birlesik Metal or generate 250.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Atlas Menkul Kiymetler
Performance |
| Timeline |
| Bms Birlesik Metal |
| Atlas Menkul Kiymetler |
Bms Birlesik and Atlas Menkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Atlas Menkul
The main advantage of trading using opposite Bms Birlesik and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Atlas Menkul 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 Atlas Menkul will offset losses from the drop in Atlas Menkul's long position.| Bms Birlesik vs. Borlease Otomotiv AS | Bms Birlesik vs. Turkiye Kalkinma Bankasi | Bms Birlesik vs. Gentas Genel Metal | Bms Birlesik vs. Mackolik Internet Hizmetleri |
| Atlas Menkul vs. Borlease Otomotiv AS | Atlas Menkul vs. MEGA METAL | Atlas Menkul vs. Politeknik Metal Sanayi | Atlas Menkul vs. Galatasaray Sportif Sinai |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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