Correlation Between Unlu Yatirim and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both Unlu 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 Unlu 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 Unlu Yatirim Holding and Bms Birlesik Metal, you can compare the effects of market volatilities on Unlu 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 Unlu Yatirim with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and Bms Birlesik.
Diversification Opportunities for Unlu Yatirim and Bms Birlesik
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unlu and Bms is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding 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 Unlu 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 Unlu Yatirim Holding 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 Unlu Yatirim i.e., Unlu Yatirim and Bms Birlesik go up and down completely randomly.
Pair Corralation between Unlu Yatirim and Bms Birlesik
Assuming the 90 days trading horizon Unlu Yatirim Holding is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Unlu Yatirim Holding is 1.16 times less risky than Bms Birlesik. The stock trades about -0.12 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 2,886 in Bms Birlesik Metal on November 3, 2024 and sell it today you would earn a total of 302.00 from holding Bms Birlesik Metal or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unlu Yatirim Holding vs. Bms Birlesik Metal
Performance |
| Timeline |
| Unlu Yatirim Holding |
| Bms Birlesik Metal |
Unlu Yatirim and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unlu Yatirim and Bms Birlesik
The main advantage of trading using opposite Unlu Yatirim and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unlu 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.| Unlu Yatirim vs. Koza Anadolu Metal | Unlu Yatirim vs. Turkiye Kalkinma Bankasi | Unlu Yatirim vs. Silverline Endustri ve | Unlu Yatirim vs. Sodas Sodyum Sanayi |
| Bms Birlesik vs. Koza Anadolu Metal | Bms Birlesik vs. Borlease Otomotiv AS | Bms Birlesik vs. Gentas Genel Metal | Bms Birlesik vs. Politeknik Metal 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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