Correlation Between Garanti Faktoring and Bms Birlesik

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

Diversification Opportunities for Garanti Faktoring and Bms Birlesik

GarantiBmsDiversified AwayGarantiBmsDiversified Away100%
0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Garanti and Bms is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS 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 Garanti Faktoring 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 Garanti Faktoring AS 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 Garanti Faktoring i.e., Garanti Faktoring and Bms Birlesik go up and down completely randomly.

Pair Corralation between Garanti Faktoring and Bms Birlesik

Assuming the 90 days trading horizon Garanti Faktoring is expected to generate 40.78 times less return on investment than Bms Birlesik. But when comparing it to its historical volatility, Garanti Faktoring AS is 1.3 times less risky than Bms Birlesik. It trades about 0.01 of its potential returns per unit of risk. Bms Birlesik Metal is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,333  in Bms Birlesik Metal on September 16, 2024 and sell it today you would earn a total of  629.00  from holding Bms Birlesik Metal or generate 26.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Garanti Faktoring AS  vs.  Bms Birlesik Metal

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -100102030
JavaScript chart by amCharts 3.21.15GARFA BMSTL
       Timeline  
Garanti Faktoring 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Garanti Faktoring AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Garanti Faktoring is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec17.51818.51919.52020.52121.522
Bms Birlesik Metal 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec232425262728293031

Garanti Faktoring and Bms Birlesik Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.28-4.7-3.12-1.550.02631.563.154.746.32 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15GARFA BMSTL
       Returns  

Pair Trading with Garanti Faktoring and Bms Birlesik

The main advantage of trading using opposite Garanti Faktoring and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring 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 Garanti Faktoring AS 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.

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