Correlation Between Bms Birlesik and Katmerciler Arac
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Katmerciler Arac 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 Katmerciler Arac 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 Katmerciler Arac Ustu, you can compare the effects of market volatilities on Bms Birlesik and Katmerciler Arac 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 Katmerciler Arac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Katmerciler Arac.
Diversification Opportunities for Bms Birlesik and Katmerciler Arac
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bms and Katmerciler is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Katmerciler Arac Ustu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katmerciler Arac Ustu 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 Katmerciler Arac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katmerciler Arac Ustu has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Katmerciler Arac go up and down completely randomly.
Pair Corralation between Bms Birlesik and Katmerciler Arac
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.88 times more return on investment than Katmerciler Arac. However, Bms Birlesik Metal is 1.14 times less risky than Katmerciler Arac. It trades about 0.13 of its potential returns per unit of risk. Katmerciler Arac Ustu is currently generating about 0.01 per unit of risk. If you would invest 1,180 in Bms Birlesik Metal on September 2, 2024 and sell it today you would earn a total of 1,670 from holding Bms Birlesik Metal or generate 141.53% 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. Katmerciler Arac Ustu
Performance |
| Timeline |
| Bms Birlesik Metal |
| Katmerciler Arac Ustu |
Bms Birlesik and Katmerciler Arac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Katmerciler Arac
The main advantage of trading using opposite Bms Birlesik and Katmerciler Arac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Katmerciler Arac 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 Katmerciler Arac will offset losses from the drop in Katmerciler Arac's long position.| Bms Birlesik vs. Borlease Otomotiv AS | Bms Birlesik vs. Turkiye Kalkinma Bankasi | Bms Birlesik vs. Gentas Genel Metal | Bms Birlesik vs. Mackolik Internet Hizmetleri |
| Katmerciler Arac vs. Koza Anadolu Metal | Katmerciler Arac vs. Gentas Genel Metal | Katmerciler Arac vs. Cuhadaroglu Metal Sanayi | Katmerciler Arac 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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