Correlation Between Ekiz Kimya and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both Ekiz Kimya and BIM 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 Ekiz Kimya and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekiz Kimya Sanayi and BIM Birlesik Magazalar, you can compare the effects of market volatilities on Ekiz Kimya and BIM 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 Ekiz Kimya with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekiz Kimya and BIM Birlesik.
Diversification Opportunities for Ekiz Kimya and BIM Birlesik
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ekiz and BIM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ekiz Kimya Sanayi and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar and Ekiz Kimya 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 Ekiz Kimya Sanayi are associated (or correlated) with BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Ekiz Kimya i.e., Ekiz Kimya and BIM Birlesik go up and down completely randomly.
Pair Corralation between Ekiz Kimya and BIM Birlesik
Assuming the 90 days trading horizon Ekiz Kimya Sanayi is expected to generate 1.79 times more return on investment than BIM Birlesik. However, Ekiz Kimya is 1.79 times more volatile than BIM Birlesik Magazalar. It trades about 0.07 of its potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.12 per unit of risk. If you would invest 1,938 in Ekiz Kimya Sanayi on September 3, 2024 and sell it today you would earn a total of 3,862 from holding Ekiz Kimya Sanayi or generate 199.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekiz Kimya Sanayi vs. BIM Birlesik Magazalar
Performance |
| Timeline |
| Ekiz Kimya Sanayi |
| BIM Birlesik Magazalar |
Ekiz Kimya and BIM Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekiz Kimya and BIM Birlesik
The main advantage of trading using opposite Ekiz Kimya and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekiz Kimya position performs unexpectedly, BIM 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 BIM Birlesik will offset losses from the drop in BIM Birlesik's long position.| Ekiz Kimya vs. MEGA METAL | Ekiz Kimya vs. Galatasaray Sportif Sinai | Ekiz Kimya vs. Koza Anadolu Metal | Ekiz Kimya vs. Akcansa Cimento Sanayi |
| BIM Birlesik vs. Pamel Yenilenebilir Elektrik | BIM Birlesik vs. Yesil Yatirim Holding | BIM Birlesik vs. Kent Gida Maddeleri | BIM Birlesik vs. Ekiz Kimya Sanayi |
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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