Correlation Between Yesil Yatirim and Bms Birlesik

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

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

Diversification Opportunities for Yesil Yatirim and Bms Birlesik

-0.84

Correlation Coefficient

Yesil Yatirim  Bms Birlesik

Pay attention - limited upside

The 3 months correlation between Yesil and Bms is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding 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 Yesil Yatirim 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 Yesil Yatirim Holding 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 Yesil Yatirim i.e., Yesil Yatirim and Bms Birlesik go up and down completely randomly.

Pair Corralation between Yesil Yatirim and Bms Birlesik

Assuming the 90 days trading horizon Yesil Yatirim Holding is expected to under-perform the Bms Birlesik. In addition to that, Yesil Yatirim is 1.64 times more volatile than Bms Birlesik Metal. It trades about -0.11 of its total potential returns per unit of risk. Bms Birlesik Metal is currently generating about 0.33 per unit of volatility. If you would invest  2,770  in Bms Birlesik Metal on December 29, 2024 and sell it today you would earn a total of  1,632  from holding Bms Birlesik Metal or generate 58.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Yesil Yatirim Holding  vs.  Bms Birlesik Metal

Yesil Yatirim Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Yatirim Holding 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

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Bms Birlesik Metal are ranked lower than 26 (%) 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 Yesil Yatirim and Bms Birlesik

The main advantage of trading using opposite Yesil Yatirim and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yesil Yatirim 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 Yesil Yatirim Holding 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 Global Correlations module to find global opportunities by holding instruments from different markets.