Correlation Between Turkiye Sise and BIM Birlesik

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

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

Diversification Opportunities for Turkiye Sise and BIM Birlesik

0.66

Correlation Coefficient

Turkiye Sise  BIM Birlesik

Poor diversification

The 3 months correlation between Turkiye and BIM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and BIM Birlesik go up and down completely randomly.

Pair Corralation between Turkiye Sise and BIM Birlesik

Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the BIM Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.3 times less risky than BIM Birlesik. The stock trades about -0.05 of its potential returns per unit of risk. The BIM Birlesik Magazalar is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  56,286  in BIM Birlesik Magazalar on September 14, 2024 and sell it today you would lose (3,386) from holding BIM Birlesik Magazalar or give up 6.02% of portfolio value over 90 days.

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

Turkiye Sise ve  vs.  BIM Birlesik Magazalar

Turkiye Sise ve

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Turkiye Sise may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 fairly strong forward indicators, BIM Birlesik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Sise and BIM Birlesik

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

The idea behind Turkiye Sise ve and BIM Birlesik Magazalar 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.