Correlation Between Borlease Otomotiv and Ayes Celik
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Ayes Celik 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 Ayes Celik 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 Ayes Celik Hasir, you can compare the effects of market volatilities on Borlease Otomotiv and Ayes Celik 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 Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Ayes Celik.
Diversification Opportunities for Borlease Otomotiv and Ayes Celik
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Borlease and Ayes is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir 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 Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Ayes Celik go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Ayes Celik
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 1.31 times more return on investment than Ayes Celik. However, Borlease Otomotiv is 1.31 times more volatile than Ayes Celik Hasir. It trades about 0.43 of its potential returns per unit of risk. Ayes Celik Hasir is currently generating about -0.31 per unit of risk. If you would invest 4,744 in Borlease Otomotiv AS on September 14, 2024 and sell it today you would earn a total of 1,201 from holding Borlease Otomotiv AS or generate 25.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Ayes Celik Hasir
Performance |
| Timeline |
| Borlease Otomotiv |
| Ayes Celik Hasir |
Borlease Otomotiv and Ayes Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Ayes Celik
The main advantage of trading using opposite Borlease Otomotiv and Ayes Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Ayes Celik 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 Ayes Celik will offset losses from the drop in Ayes Celik's long position.| Borlease Otomotiv vs. SASA Polyester Sanayi | Borlease Otomotiv vs. Turkish Airlines | Borlease Otomotiv vs. Koc Holding AS | Borlease Otomotiv vs. Ford Otomotiv Sanayi |
| Ayes Celik vs. Borlease Otomotiv AS | Ayes Celik vs. MEGA METAL | Ayes Celik vs. Politeknik Metal Sanayi | Ayes Celik vs. Sodas Sodyum Sanayi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |