Correlation Between TGS Dis and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both TGS Dis 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 TGS Dis and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGS Dis Ticaret and Bms Birlesik Metal, you can compare the effects of market volatilities on TGS Dis 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 TGS Dis with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGS Dis and Bms Birlesik.
Diversification Opportunities for TGS Dis and Bms Birlesik
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between TGS and Bms is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TGS Dis 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 TGS Dis 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 TGS Dis 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 TGS Dis i.e., TGS Dis and Bms Birlesik go up and down completely randomly.
Pair Corralation between TGS Dis and Bms Birlesik
Assuming the 90 days trading horizon TGS Dis Ticaret is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, TGS Dis Ticaret is 1.62 times less risky than Bms Birlesik. The stock trades about -0.11 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,383 in Bms Birlesik Metal on August 31, 2024 and sell it today you would earn a total of 407.00 from holding Bms Birlesik Metal or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TGS Dis Ticaret vs. Bms Birlesik Metal
Performance |
| Timeline |
| TGS Dis Ticaret |
| Bms Birlesik Metal |
TGS Dis and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGS Dis and Bms Birlesik
The main advantage of trading using opposite TGS Dis and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGS Dis 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.| TGS Dis vs. Cuhadaroglu Metal Sanayi | TGS Dis vs. MEGA METAL | TGS Dis vs. Datagate Bilgisayar Malzemeleri | TGS Dis vs. Koza Anadolu Metal |
| Bms Birlesik vs. Eregli Demir ve | Bms Birlesik vs. Iskenderun Demir ve | Bms Birlesik vs. Borusan Yatirim ve | Bms Birlesik vs. Kardemir Karabuk Demir |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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