Correlation Between Bms Birlesik and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Dagi Giyim 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 Dagi Giyim 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 Dagi Giyim Sanayi, you can compare the effects of market volatilities on Bms Birlesik and Dagi Giyim 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 Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Dagi Giyim.
Diversification Opportunities for Bms Birlesik and Dagi Giyim
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bms and Dagi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi 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 Dagi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Dagi Giyim go up and down completely randomly.
Pair Corralation between Bms Birlesik and Dagi Giyim
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.92 times more return on investment than Dagi Giyim. However, Bms Birlesik Metal is 1.09 times less risky than Dagi Giyim. It trades about 0.13 of its potential returns per unit of risk. Dagi Giyim Sanayi is currently generating about 0.07 per unit of risk. If you would invest 1,186 in Bms Birlesik Metal on September 14, 2024 and sell it today you would earn a total of 1,776 from holding Bms Birlesik Metal or generate 149.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Bms Birlesik Metal |
| Dagi Giyim Sanayi |
Bms Birlesik and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Dagi Giyim
The main advantage of trading using opposite Bms Birlesik and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Dagi Giyim 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 Dagi Giyim will offset losses from the drop in Dagi Giyim'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 |
| Dagi Giyim vs. Politeknik Metal Sanayi | Dagi Giyim vs. ICBC Turkey Bank | Dagi Giyim vs. Bms Birlesik Metal | Dagi Giyim vs. Koza Anadolu 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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