Correlation Between Guler Yatirim and Bms Birlesik

Can any of the company-specific risk be diversified away by investing in both Guler 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 Guler 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 Guler Yatirim Holding and Bms Birlesik Metal, you can compare the effects of market volatilities on Guler 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 Guler Yatirim with a short position of Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and Bms Birlesik.

Diversification Opportunities for Guler Yatirim and Bms Birlesik

0.72

Correlation Coefficient

Guler Yatirim  Bms Birlesik

Poor diversification

The 3 months correlation between Guler and Bms is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guler 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 Guler 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 Guler 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 Guler Yatirim i.e., Guler Yatirim and Bms Birlesik go up and down completely randomly.

Pair Corralation between Guler Yatirim and Bms Birlesik

Assuming the 90 days trading horizon Guler Yatirim is expected to generate 2.16 times less return on investment than Bms Birlesik. But when comparing it to its historical volatility, Guler Yatirim Holding is 1.07 times less risky than Bms Birlesik. It trades about 0.08 of its potential returns per unit of risk. Bms Birlesik Metal is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,347  in Bms Birlesik Metal on September 20, 2024 and sell it today you would earn a total of  543.00  from holding Bms Birlesik Metal or generate 23.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Guler Yatirim Holding  vs.  Bms Birlesik Metal

Guler Yatirim Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Guler Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bms Birlesik Metal

Risk-Adjusted Performance

12 of 100

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 Guler Yatirim and Bms Birlesik

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

Check out your portfolio center.

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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.