Correlation Between Vakif Gayrimenkul and Bms Birlesik

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

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

Diversification Opportunities for Vakif Gayrimenkul and Bms Birlesik

0.1

Correlation Coefficient

Vakif Gayrimenkul  Bms Birlesik

Average diversification

The 3 months correlation between Vakif and Bms is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Gayrimenkul Yatirim 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 Vakif Gayrimenkul 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 Vakif Gayrimenkul Yatirim 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 Vakif Gayrimenkul i.e., Vakif Gayrimenkul and Bms Birlesik go up and down completely randomly.

Pair Corralation between Vakif Gayrimenkul and Bms Birlesik

Assuming the 90 days trading horizon Vakif Gayrimenkul Yatirim is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Vakif Gayrimenkul Yatirim is 1.08 times less risky than Bms Birlesik. The stock trades about -0.03 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,194  in Bms Birlesik Metal on December 25, 2024 and sell it today you would earn a total of  1,034  from holding Bms Birlesik Metal or generate 32.37% return on investment over 90 days.

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

Vakif Gayrimenkul Yatirim  vs.  Bms Birlesik Metal

Vakif Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vakif Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Vakif Gayrimenkul is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the 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 12 (%) 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 Vakif Gayrimenkul and Bms Birlesik

The main advantage of trading using opposite Vakif Gayrimenkul and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vakif Gayrimenkul 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 Vakif Gayrimenkul Yatirim 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.