Correlation Between BIM Birlesik and MLP Saglik

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

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

Diversification Opportunities for BIM Birlesik and MLP Saglik

0.38

Correlation Coefficient

BIM Birlesik  MLP Saglik

Weak diversification

The 3 months correlation between BIM and MLP is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and MLP Saglik Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MLP Saglik Hizmetleri and BIM Birlesik 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 BIM Birlesik Magazalar are associated (or correlated) with MLP Saglik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MLP Saglik Hizmetleri has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and MLP Saglik go up and down completely randomly.

Pair Corralation between BIM Birlesik and MLP Saglik

Assuming the 90 days trading horizon BIM Birlesik is expected to generate 2.09 times less return on investment than MLP Saglik. But when comparing it to its historical volatility, BIM Birlesik Magazalar is 1.38 times less risky than MLP Saglik. It trades about 0.08 of its potential returns per unit of risk. MLP Saglik Hizmetleri is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  32,050  in MLP Saglik Hizmetleri on October 26, 2024 and sell it today you would earn a total of  6,800  from holding MLP Saglik Hizmetleri or generate 21.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BIM Birlesik Magazalar  vs.  MLP Saglik Hizmetleri

BIM Birlesik Magazalar

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BIM Birlesik Magazalar are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, BIM Birlesik may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MLP Saglik Hizmetleri

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MLP Saglik Hizmetleri are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, MLP Saglik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BIM Birlesik and MLP Saglik

The main advantage of trading using opposite BIM Birlesik and MLP Saglik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, MLP Saglik 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 MLP Saglik will offset losses from the drop in MLP Saglik's long position.

The idea behind BIM Birlesik Magazalar and MLP Saglik Hizmetleri 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.