Correlation Between Akcansa Cimento and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Borlease Otomotiv 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 Akcansa Cimento and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and Borlease Otomotiv AS, you can compare the effects of market volatilities on Akcansa Cimento and Borlease Otomotiv 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 Akcansa Cimento with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Borlease Otomotiv.
Diversification Opportunities for Akcansa Cimento and Borlease Otomotiv
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akcansa and Borlease is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Borlease Otomotiv
Assuming the 90 days trading horizon Akcansa Cimento Sanayi is expected to generate 1.08 times more return on investment than Borlease Otomotiv. However, Akcansa Cimento is 1.08 times more volatile than Borlease Otomotiv AS. It trades about 0.33 of its potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.24 per unit of risk. If you would invest 18,050 in Akcansa Cimento Sanayi on November 3, 2024 and sell it today you would earn a total of 2,770 from holding Akcansa Cimento Sanayi or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Borlease Otomotiv |
Akcansa Cimento and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Borlease Otomotiv
The main advantage of trading using opposite Akcansa Cimento and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Borlease Otomotiv 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 Borlease Otomotiv will offset losses from the drop in Borlease Otomotiv's long position.| Akcansa Cimento vs. Cuhadaroglu Metal Sanayi | Akcansa Cimento vs. Koza Anadolu Metal | Akcansa Cimento vs. CEO Event Medya | Akcansa Cimento vs. E Data Teknoloji Pazarlama |
| Borlease Otomotiv vs. E Data Teknoloji Pazarlama | Borlease Otomotiv vs. CEO Event Medya | Borlease Otomotiv vs. Akbank TAS | Borlease Otomotiv vs. Datagate Bilgisayar Malzemeleri |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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