Correlation Between Borlease Otomotiv and Dogus Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Dogus Gayrimenkul 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 Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim, you can compare the effects of market volatilities on Borlease Otomotiv and Dogus Gayrimenkul 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 Dogus Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Dogus Gayrimenkul.
Diversification Opportunities for Borlease Otomotiv and Dogus Gayrimenkul
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Borlease and Dogus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim 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 Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Dogus Gayrimenkul go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Dogus Gayrimenkul
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 0.92 times more return on investment than Dogus Gayrimenkul. However, Borlease Otomotiv AS is 1.09 times less risky than Dogus Gayrimenkul. It trades about 0.42 of its potential returns per unit of risk. Dogus Gayrimenkul Yatirim is currently generating about 0.15 per unit of risk. If you would invest 4,928 in Borlease Otomotiv AS on September 15, 2024 and sell it today you would earn a total of 1,167 from holding Borlease Otomotiv AS or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Dogus Gayrimenkul Yatirim
Performance |
| Timeline |
| Borlease Otomotiv |
| Dogus Gayrimenkul Yatirim |
Borlease Otomotiv and Dogus Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Dogus Gayrimenkul
The main advantage of trading using opposite Borlease Otomotiv and Dogus Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Dogus Gayrimenkul 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 Dogus Gayrimenkul will offset losses from the drop in Dogus Gayrimenkul'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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