Correlation Between Bms Birlesik and Escort Teknoloji

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

Diversification Opportunities for Bms Birlesik and Escort Teknoloji

-0.48

Correlation Coefficient

Bms Birlesik  Escort Teknoloji

Very good diversification

The 3 months correlation between Bms and Escort is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Escort Teknoloji go up and down completely randomly.

Pair Corralation between Bms Birlesik and Escort Teknoloji

Assuming the 90 days trading horizon Bms Birlesik Metal is expected to under-perform the Escort Teknoloji. But the stock apears to be less risky and, when comparing its historical volatility, Bms Birlesik Metal is 1.13 times less risky than Escort Teknoloji. The stock trades about -0.01 of its potential returns per unit of risk. The Escort Teknoloji Yatirim is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  251.00  in Escort Teknoloji Yatirim on April 23, 2025 and sell it today you would earn a total of  98.00  from holding Escort Teknoloji Yatirim or generate 39.04% return on investment over 90 days.

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

Bms Birlesik Metal  vs.  Escort Teknoloji Yatirim

Bms Birlesik Metal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bms Birlesik Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Bms Birlesik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Escort Teknoloji Yatirim

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bms Birlesik and Escort Teknoloji

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

The idea behind Bms Birlesik Metal and Escort Teknoloji Yatirim 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.