Correlation Between Baticim Bati and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both Baticim Bati and Bms Birlesik 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 Baticim Bati and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baticim Bati Anadolu and Bms Birlesik Metal, you can compare the effects of market volatilities on Baticim Bati and Bms Birlesik 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 Baticim Bati with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baticim Bati and Bms Birlesik.
Diversification Opportunities for Baticim Bati and Bms Birlesik
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baticim and Bms is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Baticim Bati Anadolu and Bms Birlesik Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bms Birlesik Metal and Baticim Bati 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 Baticim Bati Anadolu are associated (or correlated) with Bms Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bms Birlesik Metal has no effect on the direction of Baticim Bati i.e., Baticim Bati and Bms Birlesik go up and down completely randomly.
Pair Corralation between Baticim Bati and Bms Birlesik
Assuming the 90 days trading horizon Baticim Bati Anadolu is expected to under-perform the Bms Birlesik. In addition to that, Baticim Bati is 1.08 times more volatile than Bms Birlesik Metal. It trades about 0.0 of its total potential returns per unit of risk. Bms Birlesik Metal is currently generating about 0.34 per unit of volatility. If you would invest 2,387 in Bms Birlesik Metal on September 5, 2024 and sell it today you would earn a total of 613.00 from holding Bms Birlesik Metal or generate 25.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Baticim Bati Anadolu vs. Bms Birlesik Metal
Performance |
| Timeline |
| Baticim Bati Anadolu |
| Bms Birlesik Metal |
Baticim Bati and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baticim Bati and Bms Birlesik
The main advantage of trading using opposite Baticim Bati and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baticim Bati position performs unexpectedly, Bms Birlesik 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 Bms Birlesik will offset losses from the drop in Bms Birlesik's long position.| Baticim Bati vs. Bms Birlesik Metal | Baticim Bati vs. Akbank TAS | Baticim Bati vs. ICBC Turkey Bank | Baticim Bati vs. Politeknik Metal Sanayi |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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