Correlation Between BIM Birlesik and Sok Marketler

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

By analyzing existing cross correlation between BIM Birlesik Magazalar and Sok Marketler Ticaret, you can compare the effects of market volatilities on BIM Birlesik and Sok Marketler 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 BIM Birlesik with a short position of Sok Marketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Sok Marketler.

Diversification Opportunities for BIM Birlesik and Sok Marketler

0.43

Correlation Coefficient

BIM Birlesik  Sok Marketler

Very weak diversification

The 3 months correlation between BIM and Sok is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Sok Marketler Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sok Marketler Ticaret and BIM 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 BIM Birlesik Magazalar are associated (or correlated) with Sok Marketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sok Marketler Ticaret has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Sok Marketler go up and down completely randomly.

Pair Corralation between BIM Birlesik and Sok Marketler

Assuming the 90 days trading horizon BIM Birlesik Magazalar is expected to under-perform the Sok Marketler. In addition to that, BIM Birlesik is 1.27 times more volatile than Sok Marketler Ticaret. It trades about -0.08 of its total potential returns per unit of risk. Sok Marketler Ticaret is currently generating about -0.09 per unit of volatility. If you would invest  4,522  in Sok Marketler Ticaret on September 24, 2024 and sell it today you would lose (530.00) from holding Sok Marketler Ticaret or give up 11.72% of portfolio value over 90 days.

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

BIM Birlesik Magazalar  vs.  Sok Marketler Ticaret

BIM Birlesik Magazalar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BIM Birlesik Magazalar has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with BIM Birlesik and Sok Marketler

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

The idea behind BIM Birlesik Magazalar and Sok Marketler Ticaret 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..