Correlation Between Tek Art and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both Tek Art 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 Tek Art and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tek Art Insaat Ticaret and Bms Birlesik Metal, you can compare the effects of market volatilities on Tek Art 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 Tek Art with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tek Art and Bms Birlesik.
Diversification Opportunities for Tek Art and Bms Birlesik
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tek and Bms is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tek Art Insaat Ticaret 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 Tek Art 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 Tek Art Insaat Ticaret 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 Tek Art i.e., Tek Art and Bms Birlesik go up and down completely randomly.
Pair Corralation between Tek Art and Bms Birlesik
Assuming the 90 days trading horizon Tek Art Insaat Ticaret is expected to under-perform the Bms Birlesik. In addition to that, Tek Art is 1.22 times more volatile than Bms Birlesik Metal. It trades about -0.04 of its total potential returns per unit of risk. Bms Birlesik Metal is currently generating about 0.1 per unit of volatility. If you would invest 2,459 in Bms Birlesik Metal on September 3, 2024 and sell it today you would earn a total of 391.00 from holding Bms Birlesik Metal or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tek Art Insaat Ticaret vs. Bms Birlesik Metal
Performance |
| Timeline |
| Tek Art Insaat |
| Bms Birlesik Metal |
Tek Art and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tek Art and Bms Birlesik
The main advantage of trading using opposite Tek Art and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tek Art 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.| Tek Art vs. Bms Birlesik Metal | Tek Art vs. MEGA METAL | Tek Art vs. Turkiye Kalkinma Bankasi | Tek Art vs. Sodas Sodyum Sanayi |
| Bms Birlesik vs. Koza Anadolu Metal | Bms Birlesik vs. Politeknik Metal Sanayi | Bms Birlesik vs. MEGA METAL | Bms Birlesik vs. Galatasaray Sportif Sinai |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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