Correlation Between Bms Birlesik and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on Bms Birlesik and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Smart Gunes.
Diversification Opportunities for Bms Birlesik and Smart Gunes
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bms and Smart is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Smart Gunes go up and down completely randomly.
Pair Corralation between Bms Birlesik and Smart Gunes
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 2.77 times more return on investment than Smart Gunes. However, Bms Birlesik is 2.77 times more volatile than Smart Gunes Enerjisi. It trades about 0.05 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.01 per unit of risk. If you would invest 802.00 in Bms Birlesik Metal on September 3, 2024 and sell it today you would earn a total of 2,052 from holding Bms Birlesik Metal or generate 255.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bms Birlesik Metal vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Bms Birlesik Metal |
| Smart Gunes Enerjisi |
Bms Birlesik and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Smart Gunes
The main advantage of trading using opposite Bms Birlesik and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Bms Birlesik vs. Koza Anadolu Metal | Bms Birlesik vs. Politeknik Metal Sanayi | Bms Birlesik vs. MEGA METAL | Bms Birlesik vs. Galatasaray Sportif Sinai |
| Smart Gunes vs. E Data Teknoloji Pazarlama | Smart Gunes vs. MEGA METAL | Smart Gunes vs. ICBC Turkey Bank | Smart Gunes vs. Gentas Genel 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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