Correlation Between Borlease Otomotiv and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv 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 Borlease Otomotiv and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borlease Otomotiv AS and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Borlease Otomotiv 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 Borlease Otomotiv with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Akcansa Cimento.
Diversification Opportunities for Borlease Otomotiv and Akcansa Cimento
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Borlease and Akcansa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS 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 Borlease Otomotiv 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 Borlease Otomotiv AS 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 Borlease Otomotiv i.e., Borlease Otomotiv and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Akcansa Cimento
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 1.65 times more return on investment than Akcansa Cimento. However, Borlease Otomotiv is 1.65 times more volatile than Akcansa Cimento Sanayi. It trades about 0.15 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.23 per unit of risk. If you would invest 6,725 in Borlease Otomotiv AS on October 23, 2024 and sell it today you would earn a total of 450.00 from holding Borlease Otomotiv AS or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| Borlease Otomotiv |
| Akcansa Cimento Sanayi |
Borlease Otomotiv and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Akcansa Cimento
The main advantage of trading using opposite Borlease Otomotiv and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv 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.| Borlease Otomotiv vs. Akbank TAS | Borlease Otomotiv vs. MEGA METAL | Borlease Otomotiv vs. Cuhadaroglu Metal Sanayi | Borlease Otomotiv vs. Politeknik Metal Sanayi |
| Akcansa Cimento vs. CEO Event Medya | Akcansa Cimento vs. Borlease Otomotiv AS | Akcansa Cimento vs. Trabzonspor Sportif Yatirim | Akcansa Cimento vs. Turkiye Kalkinma Bankasi |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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