Correlation Between Bms Birlesik and Bayrak EBT
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Bayrak EBT 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 Bayrak EBT 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 Bayrak EBT Taban, you can compare the effects of market volatilities on Bms Birlesik and Bayrak EBT 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 Bayrak EBT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Bayrak EBT.
Diversification Opportunities for Bms Birlesik and Bayrak EBT
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bms and Bayrak is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Bayrak EBT Taban in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayrak EBT Taban 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 Bayrak EBT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayrak EBT Taban has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Bayrak EBT go up and down completely randomly.
Pair Corralation between Bms Birlesik and Bayrak EBT
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.53 times more return on investment than Bayrak EBT. However, Bms Birlesik Metal is 1.88 times less risky than Bayrak EBT. It trades about 0.09 of its potential returns per unit of risk. Bayrak EBT Taban is currently generating about -0.01 per unit of risk. If you would invest 2,489 in Bms Birlesik Metal on September 2, 2024 and sell it today you would earn a total of 361.00 from holding Bms Birlesik Metal or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Bayrak EBT Taban
Performance |
| Timeline |
| Bms Birlesik Metal |
| Bayrak EBT Taban |
Bms Birlesik and Bayrak EBT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Bayrak EBT
The main advantage of trading using opposite Bms Birlesik and Bayrak EBT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Bayrak EBT 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 Bayrak EBT will offset losses from the drop in Bayrak EBT'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 |
| Bayrak EBT vs. Akcansa Cimento Sanayi | Bayrak EBT vs. Bms Birlesik Metal | Bayrak EBT vs. MEGA METAL | Bayrak EBT vs. Borlease Otomotiv 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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