Correlation Between Bayrak EBT and BIM Birlesik

Can any of the company-specific risk be diversified away by investing in both Bayrak EBT 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 Bayrak EBT and BIM Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bayrak EBT Taban and BIM Birlesik Magazalar, you can compare the effects of market volatilities on Bayrak EBT 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 Bayrak EBT with a short position of BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayrak EBT and BIM Birlesik.

Diversification Opportunities for Bayrak EBT and BIM Birlesik

0.01

Correlation Coefficient

Bayrak EBT  BIM Birlesik

Significant diversification

The 3 months correlation between Bayrak and BIM is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bayrak EBT Taban 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 Bayrak EBT 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 Bayrak EBT Taban 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 Bayrak EBT i.e., Bayrak EBT and BIM Birlesik go up and down completely randomly.

Pair Corralation between Bayrak EBT and BIM Birlesik

Assuming the 90 days trading horizon Bayrak EBT is expected to generate 1.12 times less return on investment than BIM Birlesik. In addition to that, Bayrak EBT is 2.19 times more volatile than BIM Birlesik Magazalar. It trades about 0.05 of its total potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.12 per unit of volatility. If you would invest  13,153  in BIM Birlesik Magazalar on October 12, 2024 and sell it today you would earn a total of  39,147  from holding BIM Birlesik Magazalar or generate 297.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.19%
Values	Daily Returns

Bayrak EBT Taban  vs.  BIM Birlesik Magazalar

Bayrak EBT Taban

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bayrak EBT Taban are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bayrak EBT may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BIM Birlesik Magazalar

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BIM Birlesik Magazalar are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, BIM Birlesik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bayrak EBT and BIM Birlesik

The main advantage of trading using opposite Bayrak EBT and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayrak EBT 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.

The idea behind Bayrak EBT Taban and BIM Birlesik Magazalar pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.