Correlation Between Bms Birlesik and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on Bms Birlesik and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Izmir Demir.
Diversification Opportunities for Bms Birlesik and Izmir Demir
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bms and Izmir is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Izmir Demir go up and down completely randomly.
Pair Corralation between Bms Birlesik and Izmir Demir
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 1.23 times more return on investment than Izmir Demir. However, Bms Birlesik is 1.23 times more volatile than Izmir Demir Celik. It trades about 0.11 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about -0.02 per unit of risk. If you would invest 1,090 in Bms Birlesik Metal on September 12, 2024 and sell it today you would earn a total of 1,902 from holding Bms Birlesik Metal or generate 174.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Izmir Demir Celik
Performance |
| Timeline |
| Bms Birlesik Metal |
| Izmir Demir Celik |
Bms Birlesik and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Izmir Demir
The main advantage of trading using opposite Bms Birlesik and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir's long position.| Bms Birlesik vs. ICBC Turkey Bank | Bms Birlesik vs. Turkish Airlines | Bms Birlesik vs. Datagate Bilgisayar Malzemeleri | Bms Birlesik vs. Sekerbank TAS |
| Izmir Demir vs. Galatasaray Sportif Sinai | Izmir Demir vs. Silverline Endustri ve | Izmir Demir vs. MEGA METAL | Izmir Demir vs. Bms Birlesik 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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