Correlation Between Bms Birlesik and GSD Denizcilik

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

By analyzing existing cross correlation between Bms Birlesik Metal and GSD Denizcilik Gayrimenkul, you can compare the effects of market volatilities on Bms Birlesik and GSD Denizcilik 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 Bms Birlesik with a short position of GSD Denizcilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and GSD Denizcilik.

Diversification Opportunities for Bms Birlesik and GSD Denizcilik

-0.6

Correlation Coefficient

Bms Birlesik  GSD Denizcilik

Excellent diversification

The 3 months correlation between Bms and GSD is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and GSD Denizcilik Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Denizcilik Gayri and Bms 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 Bms Birlesik Metal are associated (or correlated) with GSD Denizcilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Denizcilik Gayri has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and GSD Denizcilik go up and down completely randomly.

Pair Corralation between Bms Birlesik and GSD Denizcilik

Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 1.32 times more return on investment than GSD Denizcilik. However, Bms Birlesik is 1.32 times more volatile than GSD Denizcilik Gayrimenkul. It trades about 0.22 of its potential returns per unit of risk. GSD Denizcilik Gayrimenkul is currently generating about -0.08 per unit of risk. If you would invest  2,770  in Bms Birlesik Metal on December 21, 2024 and sell it today you would earn a total of  1,474  from holding Bms Birlesik Metal or generate 53.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Bms Birlesik Metal  vs.  GSD Denizcilik Gayrimenkul

Bms Birlesik Metal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bms Birlesik Metal are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bms Birlesik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

GSD Denizcilik Gayri

Risk-Adjusted Performance

Very Weak

Over the last 90 days GSD Denizcilik Gayrimenkul has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Bms Birlesik and GSD Denizcilik

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

The idea behind Bms Birlesik Metal and GSD Denizcilik Gayrimenkul 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.