Correlation Between Bms Birlesik and Merko Gida
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Merko Gida 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 Merko Gida 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 Merko Gida Sanayi, you can compare the effects of market volatilities on Bms Birlesik and Merko Gida 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 Merko Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Merko Gida.
Diversification Opportunities for Bms Birlesik and Merko Gida
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bms and Merko is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Merko Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merko Gida Sanayi 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 Merko Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merko Gida Sanayi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Merko Gida go up and down completely randomly.
Pair Corralation between Bms Birlesik and Merko Gida
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.81 times more return on investment than Merko Gida. However, Bms Birlesik Metal is 1.23 times less risky than Merko Gida. It trades about 0.25 of its potential returns per unit of risk. Merko Gida Sanayi is currently generating about 0.03 per unit of risk. If you would invest 2,383 in Bms Birlesik Metal on August 30, 2024 and sell it today you would earn a total of 407.00 from holding Bms Birlesik Metal or generate 17.08% 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. Merko Gida Sanayi
Performance |
| Timeline |
| Bms Birlesik Metal |
| Merko Gida Sanayi |
Bms Birlesik and Merko Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Merko Gida
The main advantage of trading using opposite Bms Birlesik and Merko Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Merko Gida 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 Merko Gida will offset losses from the drop in Merko Gida's long position.| Bms Birlesik vs. Eregli Demir ve | Bms Birlesik vs. Iskenderun Demir ve | Bms Birlesik vs. Kardemir Karabuk Demir | Bms Birlesik vs. Kardemir Karabuk Demir |
| Merko Gida vs. E Data Teknoloji Pazarlama | Merko Gida vs. Bms Birlesik Metal | Merko Gida vs. Politeknik Metal Sanayi | Merko Gida 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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