Correlation Between Bms Birlesik and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Bms Birlesik and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Petrokent Turizm.
Diversification Opportunities for Bms Birlesik and Petrokent Turizm
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bms and Petrokent is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Bms Birlesik and Petrokent Turizm
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 3.49 times more return on investment than Petrokent Turizm. However, Bms Birlesik is 3.49 times more volatile than Petrokent Turizm AS. It trades about 0.05 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.03 per unit of risk. If you would invest 815.00 in Bms Birlesik Metal on September 14, 2024 and sell it today you would earn a total of 2,163 from holding Bms Birlesik Metal or generate 265.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Petrokent Turizm AS
Performance |
| Timeline |
| Bms Birlesik Metal |
| Petrokent Turizm |
Bms Birlesik and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Petrokent Turizm
The main advantage of trading using opposite Bms Birlesik and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Bms Birlesik vs. Qnb Finansbank AS | Bms Birlesik vs. Borlease Otomotiv AS | Bms Birlesik vs. Gentas Genel Metal | Bms Birlesik vs. Koza Anadolu Metal |
| Petrokent Turizm vs. Bms Birlesik Metal | Petrokent Turizm vs. Koza Anadolu Metal | Petrokent Turizm vs. CEO Event Medya | Petrokent Turizm vs. Creditwest Faktoring AS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |