Correlation Between E Data and Bms Birlesik

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

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

Diversification Opportunities for E Data and Bms Birlesik

-0.59

Correlation Coefficient

E Data  Bms Birlesik

Excellent diversification

The 3 months correlation between EDATA and Bms is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama 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 E Data 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 E Data Teknoloji Pazarlama 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 E Data i.e., E Data and Bms Birlesik go up and down completely randomly.

Pair Corralation between E Data and Bms Birlesik

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, E Data Teknoloji Pazarlama is 1.04 times less risky than Bms Birlesik. The stock trades about -0.1 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,046  in Bms Birlesik Metal on December 24, 2024 and sell it today you would earn a total of  1,134  from holding Bms Birlesik Metal or generate 37.23% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  Bms Birlesik Metal

E Data Teknoloji

Risk-Adjusted Performance

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 14 (%) 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.

Pair Trading with E Data and Bms Birlesik

The main advantage of trading using opposite E Data and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data 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 E Data Teknoloji Pazarlama 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.