Correlation Between BIM Birlesik and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both BIM Birlesik and Pegasus Hava 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 BIM Birlesik and Pegasus Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIM Birlesik Magazalar and Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on BIM Birlesik and Pegasus Hava 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 BIM Birlesik with a short position of Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIM Birlesik and Pegasus Hava.
Diversification Opportunities for BIM Birlesik and Pegasus Hava
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIM and Pegasus is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BIM Birlesik Magazalar and Pegasus Hava Tasimaciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hava Tasimaciligi and BIM 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 BIM Birlesik Magazalar are associated (or correlated) with Pegasus Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hava Tasimaciligi has no effect on the direction of BIM Birlesik i.e., BIM Birlesik and Pegasus Hava go up and down completely randomly.
Pair Corralation between BIM Birlesik and Pegasus Hava
Assuming the 90 days trading horizon BIM Birlesik is expected to generate 1.29 times less return on investment than Pegasus Hava. But when comparing it to its historical volatility, BIM Birlesik Magazalar is 1.21 times less risky than Pegasus Hava. It trades about 0.14 of its potential returns per unit of risk. Pegasus Hava Tasimaciligi is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12,670 in Pegasus Hava Tasimaciligi on February 3, 2024 and sell it today you would earn a total of 90,830 from holding Pegasus Hava Tasimaciligi or generate 716.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BIM Birlesik Magazalar vs. Pegasus Hava Tasimaciligi
Performance |
Timeline |
BIM Birlesik Magazalar |
Pegasus Hava Tasimaciligi |
BIM Birlesik and Pegasus Hava Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIM Birlesik and Pegasus Hava
The main advantage of trading using opposite BIM Birlesik and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIM Birlesik position performs unexpectedly, Pegasus Hava 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 Pegasus Hava will offset losses from the drop in Pegasus Hava's long position.BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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