Correlation Between Bms Birlesik and Penguen Gida

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

Diversification Opportunities for Bms Birlesik and Penguen Gida

0.0

Correlation Coefficient

Bms Birlesik  Penguen Gida

Pay attention - limited upside

The 3 months correlation between Bms and Penguen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bms Birlesik Metal and Penguen Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguen Gida 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 Penguen Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguen Gida Sanayi has no effect on the direction of Bms Birlesik i.e., Bms Birlesik and Penguen Gida go up and down completely randomly.

Pair Corralation between Bms Birlesik and Penguen Gida

Assuming the 90 days trading horizon Bms Birlesik is expected to generate 181.56 times less return on investment than Penguen Gida. But when comparing it to its historical volatility, Bms Birlesik Metal is 1.12 times less risky than Penguen Gida. It trades about 0.0 of its potential returns per unit of risk. Penguen Gida Sanayi is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  718.00  in Penguen Gida Sanayi on April 22, 2025 and sell it today you would earn a total of  187.00  from holding Penguen Gida Sanayi or generate 26.04% return on investment over 90 days.

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

Bms Birlesik Metal  vs.  Penguen Gida Sanayi

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.

Penguen Gida Sanayi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bms Birlesik and Penguen Gida

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

The idea behind Bms Birlesik Metal and Penguen Gida 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.