Correlation Between Galatasaray Sportif and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif 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 Galatasaray Sportif and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and Bms Birlesik Metal, you can compare the effects of market volatilities on Galatasaray Sportif 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 Galatasaray Sportif with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Bms Birlesik.
Diversification Opportunities for Galatasaray Sportif and Bms Birlesik
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Galatasaray and Bms is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai 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 Galatasaray Sportif i.e., Galatasaray Sportif and Bms Birlesik go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Bms Birlesik
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.1 times less risky than Bms Birlesik. The stock trades about -0.14 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,892 in Bms Birlesik Metal on November 7, 2024 and sell it today you would earn a total of 296.00 from holding Bms Birlesik Metal or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Bms Birlesik Metal
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Bms Birlesik Metal |
Galatasaray Sportif and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Bms Birlesik
The main advantage of trading using opposite Galatasaray Sportif and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif 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.| Galatasaray Sportif vs. Cuhadaroglu Metal Sanayi | Galatasaray Sportif vs. Politeknik Metal Sanayi | Galatasaray Sportif vs. MEGA METAL | Galatasaray Sportif vs. Silverline Endustri ve |
| Bms Birlesik vs. Sodas Sodyum Sanayi | Bms Birlesik vs. Politeknik Metal Sanayi | Bms Birlesik vs. Cuhadaroglu Metal Sanayi | Bms Birlesik vs. Koza Anadolu 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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