Correlation Between Bms Birlesik and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Escort Teknoloji 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 Escort Teknoloji 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 Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Bms Birlesik and Escort Teknoloji 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 Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Escort Teknoloji.
Diversification Opportunities for Bms Birlesik and Escort Teknoloji
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bms and Escort is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Escort Teknoloji go up and down completely randomly.
Pair Corralation between Bms Birlesik and Escort Teknoloji
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 1.81 times more return on investment than Escort Teknoloji. However, Bms Birlesik is 1.81 times more volatile than Escort Teknoloji Yatirim. It trades about 0.07 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about 0.07 per unit of risk. If you would invest 2,770 in Bms Birlesik Metal on October 24, 2024 and sell it today you would earn a total of 120.00 from holding Bms Birlesik Metal or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| Bms Birlesik Metal |
| Escort Teknoloji Yatirim |
Bms Birlesik and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Escort Teknoloji
The main advantage of trading using opposite Bms Birlesik and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| Bms Birlesik vs. Politeknik Metal Sanayi | Bms Birlesik vs. Sodas Sodyum Sanayi | Bms Birlesik vs. Koza Anadolu Metal | Bms Birlesik vs. Gentas Genel Metal |
| Escort Teknoloji vs. Bms Birlesik Metal | Escort Teknoloji vs. Turkish Airlines | Escort Teknoloji vs. KOC METALURJI | Escort Teknoloji 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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