Correlation Between Burcelik Bursa and Bms Birlesik

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Can any of the company-specific risk be diversified away by investing in both Burcelik Bursa and Bms 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 Burcelik Bursa and Bms Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burcelik Bursa Celik and Bms Birlesik Metal, you can compare the effects of market volatilities on Burcelik Bursa and Bms 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 Burcelik Bursa with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burcelik Bursa and Bms Birlesik.

Diversification Opportunities for Burcelik Bursa and Bms Birlesik

BurcelikBmsDiversified AwayBurcelikBmsDiversified Away100%
-0.78
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Burcelik and Bms is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Burcelik Bursa Celik and Bms Birlesik Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bms Birlesik Metal and Burcelik Bursa 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 Burcelik Bursa Celik are associated (or correlated) with Bms Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bms Birlesik Metal has no effect on the direction of Burcelik Bursa i.e., Burcelik Bursa and Bms Birlesik go up and down completely randomly.

Pair Corralation between Burcelik Bursa and Bms Birlesik

Assuming the 90 days trading horizon Burcelik Bursa Celik is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Burcelik Bursa Celik is 1.28 times less risky than Bms Birlesik. The stock trades about -0.16 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,407  in Bms Birlesik Metal on October 21, 2024 and sell it today you would earn a total of  483.00  from holding Bms Birlesik Metal or generate 20.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Burcelik Bursa Celik  vs.  Bms Birlesik Metal

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -2002040
JavaScript chart by amCharts 3.21.15BURCE BMSTL
       Timeline  
Burcelik Bursa Celik 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Burcelik Bursa Celik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan18192021222324
Bms Birlesik Metal 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Bms Birlesik Metal are ranked lower than 8 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan24262830323436

Burcelik Bursa and Bms Birlesik Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.63-3.46-2.3-1.140.00.911.842.773.7 0.0350.0400.0450.0500.055
JavaScript chart by amCharts 3.21.15BURCE BMSTL
       Returns  

Pair Trading with Burcelik Bursa and Bms Birlesik

The main advantage of trading using opposite Burcelik Bursa and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burcelik Bursa position performs unexpectedly, Bms 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 Bms Birlesik will offset losses from the drop in Bms Birlesik's long position.
The idea behind Burcelik Bursa Celik and Bms Birlesik Metal 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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