Correlation Between Bms Birlesik and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Bms Birlesik and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Galatasaray Sportif.
Diversification Opportunities for Bms Birlesik and Galatasaray Sportif
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bms and Galatasaray is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Bms Birlesik and Galatasaray Sportif
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.83 times more return on investment than Galatasaray Sportif. However, Bms Birlesik Metal is 1.2 times less risky than Galatasaray Sportif. It trades about 0.27 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.05 per unit of risk. If you would invest 2,886 in Bms Birlesik Metal on November 3, 2024 and sell it today you would earn a total of 302.00 from holding Bms Birlesik Metal or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Bms Birlesik Metal |
| Galatasaray Sportif Sinai |
Bms Birlesik and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Galatasaray Sportif
The main advantage of trading using opposite Bms Birlesik and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| Bms Birlesik vs. ICBC Turkey Bank | Bms Birlesik vs. KOC METALURJI | Bms Birlesik vs. Turkiye Kalkinma Bankasi | Bms Birlesik vs. Turkish Airlines |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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