Correlation Between Bms Birlesik and Ihlas Yayin
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Ihlas Yayin 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 Ihlas Yayin 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 Ihlas Yayin Holding, you can compare the effects of market volatilities on Bms Birlesik and Ihlas Yayin 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 Ihlas Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Ihlas Yayin.
Diversification Opportunities for Bms Birlesik and Ihlas Yayin
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bms and Ihlas is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin Holding 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 Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Ihlas Yayin go up and down completely randomly.
Pair Corralation between Bms Birlesik and Ihlas Yayin
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.63 times more return on investment than Ihlas Yayin. However, Bms Birlesik Metal is 1.59 times less risky than Ihlas Yayin. It trades about 0.15 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about -0.24 per unit of risk. If you would invest 2,630 in Bms Birlesik Metal on September 19, 2024 and sell it today you would earn a total of 260.00 from holding Bms Birlesik Metal or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Ihlas Yayin Holding
Performance |
| Timeline |
| Bms Birlesik Metal |
| Ihlas Yayin Holding |
Bms Birlesik and Ihlas Yayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Ihlas Yayin
The main advantage of trading using opposite Bms Birlesik and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Ihlas Yayin 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 Ihlas Yayin will offset losses from the drop in Ihlas Yayin's long position.| Bms Birlesik vs. Eregli Demir ve | Bms Birlesik vs. Iskenderun Demir ve | Bms Birlesik vs. Kardemir Karabuk Demir | Bms Birlesik vs. Dogus Gayrimenkul Yatirim |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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