Correlation Between Bms Birlesik and Akcansa Cimento

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

By analyzing existing cross correlation between Bms Birlesik Metal and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Bms Birlesik and Akcansa Cimento 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 Bms Birlesik with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bms Birlesik and Akcansa Cimento.

Diversification Opportunities for Bms Birlesik and Akcansa Cimento

-0.09

Correlation Coefficient

Bms Birlesik  Akcansa Cimento

Good diversification

The 3 months correlation between Bms and Akcansa is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Bms 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 Bms Birlesik Metal are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Bms Birlesik and Akcansa Cimento

Assuming the 90 days trading horizon Bms Birlesik Metal is expected to generate 1.99 times more return on investment than Akcansa Cimento. However, Bms Birlesik is 1.99 times more volatile than Akcansa Cimento Sanayi. It trades about 0.28 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about -0.39 per unit of risk. If you would invest  3,200  in Bms Birlesik Metal on March 9, 2024 and sell it today you would earn a total of  676.00  from holding Bms Birlesik Metal or generate 21.13% return on investment over 90 days.

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

Bms Birlesik Metal  vs.  Akcansa Cimento Sanayi

Bms Birlesik Metal

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bms Birlesik Metal are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Bms Birlesik may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Akcansa Cimento Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bms Birlesik and Akcansa Cimento

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

The idea behind Bms Birlesik Metal and Akcansa Cimento Sanayi 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.