Correlation Between Bms Birlesik and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Ekiz Kimya 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 Ekiz Kimya 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 Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Bms Birlesik and Ekiz Kimya 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 Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Ekiz Kimya.
Diversification Opportunities for Bms Birlesik and Ekiz Kimya
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bms and Ekiz is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya 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 Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Bms Birlesik and Ekiz Kimya
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 3.36 times more return on investment than Ekiz Kimya. However, Bms Birlesik is 3.36 times more volatile than Ekiz Kimya Sanayi. It trades about 0.05 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about 0.07 per unit of risk. If you would invest 983.00 in Bms Birlesik Metal on October 27, 2024 and sell it today you would earn a total of 2,117 from holding Bms Birlesik Metal or generate 215.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Bms Birlesik Metal |
| Ekiz Kimya Sanayi |
Bms Birlesik and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Ekiz Kimya
The main advantage of trading using opposite Bms Birlesik and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Bms Birlesik vs. Koza Anadolu Metal | Bms Birlesik vs. Mackolik Internet Hizmetleri | Bms Birlesik vs. Politeknik Metal Sanayi | Bms Birlesik vs. Gentas Genel Metal |
| Ekiz Kimya vs. Mackolik Internet Hizmetleri | Ekiz Kimya vs. Silverline Endustri ve | Ekiz Kimya vs. Gentas Genel Metal | Ekiz Kimya 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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