Correlation Between Bms Birlesik and Vakif Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Bms Birlesik and Vakif Gayrimenkul 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 Vakif Gayrimenkul 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 Vakif Gayrimenkul Yatirim, you can compare the effects of market volatilities on Bms Birlesik and Vakif Gayrimenkul 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 Vakif Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Vakif Gayrimenkul.
Diversification Opportunities for Bms Birlesik and Vakif Gayrimenkul
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bms and Vakif is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Vakif Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Gayrimenkul Yatirim 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 Vakif Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Gayrimenkul Yatirim has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Vakif Gayrimenkul go up and down completely randomly.
Pair Corralation between Bms Birlesik and Vakif Gayrimenkul
Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 0.81 times more return on investment than Vakif Gayrimenkul. However, Bms Birlesik Metal is 1.23 times less risky than Vakif Gayrimenkul. It trades about 0.07 of its potential returns per unit of risk. Vakif Gayrimenkul Yatirim is currently generating about 0.03 per unit of risk. If you would invest 1,640 in Bms Birlesik Metal on August 27, 2024 and sell it today you would earn a total of 4,520 from holding Bms Birlesik Metal or generate 275.61% 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. Vakif Gayrimenkul Yatirim
Performance |
| Timeline |
| Bms Birlesik Metal |
| Vakif Gayrimenkul Yatirim |
Bms Birlesik and Vakif Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bms Birlesik and Vakif Gayrimenkul
The main advantage of trading using opposite Bms Birlesik and Vakif Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bms Birlesik position performs unexpectedly, Vakif Gayrimenkul 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 Vakif Gayrimenkul will offset losses from the drop in Vakif Gayrimenkul's long position.| Bms Birlesik vs. Qnb Finansbank AS | Bms Birlesik vs. Sodas Sodyum Sanayi | Bms Birlesik vs. Creditwest Faktoring AS | Bms Birlesik vs. Akbank TAS |
| Vakif Gayrimenkul vs. ICBC Turkey Bank | Vakif Gayrimenkul vs. Borlease Otomotiv AS | Vakif Gayrimenkul vs. Sodas Sodyum Sanayi | Vakif Gayrimenkul 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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