Correlation Between Ufuk Yatirim and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both Ufuk Yatirim 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 Ufuk Yatirim and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ufuk Yatirim Yonetim and Bms Birlesik Metal, you can compare the effects of market volatilities on Ufuk Yatirim 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 Ufuk Yatirim with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and Bms Birlesik.
Diversification Opportunities for Ufuk Yatirim and Bms Birlesik
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ufuk and Bms is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim 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 Ufuk Yatirim 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 Ufuk Yatirim Yonetim 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 Ufuk Yatirim i.e., Ufuk Yatirim and Bms Birlesik go up and down completely randomly.
Pair Corralation between Ufuk Yatirim and Bms Birlesik
Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Ufuk Yatirim Yonetim is 1.77 times less risky than Bms Birlesik. The stock trades about -0.04 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,002 in Bms Birlesik Metal on October 9, 2024 and sell it today you would lose (110.00) from holding Bms Birlesik Metal or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ufuk Yatirim Yonetim vs. Bms Birlesik Metal
Performance |
| Timeline |
| Ufuk Yatirim Yonetim |
| Bms Birlesik Metal |
Ufuk Yatirim and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ufuk Yatirim and Bms Birlesik
The main advantage of trading using opposite Ufuk Yatirim and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ufuk Yatirim 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.| Ufuk Yatirim vs. Gentas Genel Metal | Ufuk Yatirim vs. Datagate Bilgisayar Malzemeleri | Ufuk Yatirim vs. Creditwest Faktoring AS | Ufuk Yatirim vs. Turkish Airlines |
| Bms Birlesik vs. Akcansa Cimento Sanayi | Bms Birlesik vs. KOC METALURJI | Bms Birlesik vs. Gentas Genel Metal | 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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