Correlation Between Tekfen Holding and BIM Birlesik

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

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

Diversification Opportunities for Tekfen Holding and BIM Birlesik

-0.2

Correlation Coefficient

Tekfen Holding  BIM Birlesik

Good diversification

The 3 months correlation between Tekfen and BIM is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS 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 Tekfen Holding 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 Tekfen Holding AS 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 Tekfen Holding i.e., Tekfen Holding and BIM Birlesik go up and down completely randomly.

Pair Corralation between Tekfen Holding and BIM Birlesik

Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.21 times more return on investment than BIM Birlesik. However, Tekfen Holding is 1.21 times more volatile than BIM Birlesik Magazalar. It trades about 0.14 of its potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about -0.08 per unit of risk. If you would invest  5,740  in Tekfen Holding AS on September 22, 2024 and sell it today you would earn a total of  1,645  from holding Tekfen Holding AS or generate 28.66% return on investment over 90 days.

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

Tekfen Holding AS  vs.  BIM Birlesik Magazalar

Tekfen Holding AS

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tekfen Holding AS are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Tekfen Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Tekfen Holding and BIM Birlesik

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

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.