Correlation Between BIM Birlesik and Yatas Yatak

Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Yatas Yatak 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 Yatas Yatak 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 Yatas Yatak ve, you can compare the effects of market volatilities on BIM Birlesik and Yatas Yatak 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 Yatas Yatak. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Yatas Yatak.

Diversification Opportunities for BIM Birlesik and Yatas Yatak

0.71

Correlation Coefficient

BIM Birlesik  Yatas Yatak

Poor diversification

The 3 months correlation between BIM and Yatas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Yatas Yatak ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatas Yatak ve 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 Yatas Yatak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatas Yatak ve has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Yatas Yatak go up and down completely randomly.

Pair Corralation between BIM Birlesik and Yatas Yatak

Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to under-perform the Yatas Yatak. In addition to that, BIM Birlesik is 1.19 times more volatile than Yatas Yatak ve. It trades about -0.02 of its total potential returns per unit of risk. Yatas Yatak ve is currently generating about 0.01 per unit of volatility. If you would invest  2,798  in Yatas Yatak ve on September 12, 2024 and sell it today you would lose (4.00) from holding Yatas Yatak ve or give up 0.14% of portfolio value over 90 days.

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

BIM Birlesik Magazalar  vs.  Yatas Yatak ve

BIM Birlesik Magazalar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BIM Birlesik Magazalar has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, BIM Birlesik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Yatas Yatak ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yatas Yatak ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Yatas Yatak is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BIM Birlesik and Yatas Yatak

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

The idea behind BIM Birlesik Magazalar and Yatas Yatak ve 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.