Correlation Between MMC Sanayi and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both MMC Sanayi 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 MMC Sanayi and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMC Sanayi ve and BIM Birlesik Magazalar, you can compare the effects of market volatilities on MMC Sanayi 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 MMC Sanayi with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMC Sanayi and BIM Birlesik.
Diversification Opportunities for MMC Sanayi and BIM Birlesik
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MMC and BIM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MMC Sanayi ve 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 MMC Sanayi 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 MMC Sanayi ve 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 MMC Sanayi i.e., MMC Sanayi and BIM Birlesik go up and down completely randomly.
Pair Corralation between MMC Sanayi and BIM Birlesik
Assuming the 90 days trading horizon MMC Sanayi ve is expected to under-perform the BIM Birlesik. In addition to that, MMC Sanayi is 1.32 times more volatile than BIM Birlesik Magazalar. It trades about -0.26 of its total potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.03 per unit of volatility. If you would invest 47,275 in BIM Birlesik Magazalar on August 28, 2024 and sell it today you would earn a total of 550.00 from holding BIM Birlesik Magazalar or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MMC Sanayi ve vs. BIM Birlesik Magazalar
Performance |
| Timeline |
| MMC Sanayi ve |
| BIM Birlesik Magazalar |
MMC Sanayi and BIM Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMC Sanayi and BIM Birlesik
The main advantage of trading using opposite MMC Sanayi and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMC Sanayi 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.| MMC Sanayi vs. CEO Event Medya | MMC Sanayi vs. Gentas Genel Metal | MMC Sanayi vs. Koza Anadolu Metal | MMC Sanayi vs. Sekerbank TAS |
| BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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