Correlation Between Bms Birlesik and Ral Yatirim

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

Diversification Opportunities for Bms Birlesik and Ral Yatirim

0.73

Correlation Coefficient

Bms Birlesik  Ral Yatirim

Poor diversification

The 3 months correlation between Bms and Ral is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Ral Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ral Yatirim Holding 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 Ral Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ral Yatirim Holding has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Ral Yatirim go up and down completely randomly.

Pair Corralation between Bms Birlesik and Ral Yatirim

Assuming the 90 days trading horizon Bms Birlesik is expected to generate 1.36 times less return on investment than Ral Yatirim. In addition to that, Bms Birlesik is 1.04 times more volatile than Ral Yatirim Holding. It trades about 0.19 of its total potential returns per unit of risk. Ral Yatirim Holding is currently generating about 0.27 per unit of volatility. If you would invest  5,477  in Ral Yatirim Holding on December 20, 2024 and sell it today you would earn a total of  3,628  from holding Ral Yatirim Holding or generate 66.24% return on investment over 90 days.

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

Bms Birlesik Metal  vs.  Ral Yatirim Holding

Bms Birlesik Metal

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bms Birlesik Metal are ranked lower than 15 (%) 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.

Ral Yatirim Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ral Yatirim Holding are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ral Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bms Birlesik and Ral Yatirim

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

The idea behind Bms Birlesik Metal and Ral Yatirim Holding 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.