Correlation Between Borlease Otomotiv and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Borlease Otomotiv and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Dow Jones.
Diversification Opportunities for Borlease Otomotiv and Dow Jones
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Borlease and Dow is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Dow Jones go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Dow Jones
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 4.86 times more return on investment than Dow Jones. However, Borlease Otomotiv is 4.86 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 2,732 in Borlease Otomotiv AS on August 28, 2024 and sell it today you would earn a total of 2,248 from holding Borlease Otomotiv AS or generate 82.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 58.19% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Dow Jones Industrial
Performance |
| Timeline |
Borlease Otomotiv and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Borlease Otomotiv AS
Pair trading matchups for Borlease Otomotiv
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Borlease Otomotiv and Dow Jones
The main advantage of trading using opposite Borlease Otomotiv and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Borlease Otomotiv vs. Turkish Airlines | Borlease Otomotiv vs. Koc Holding AS | Borlease Otomotiv vs. Ford Otomotiv Sanayi | Borlease Otomotiv vs. Turkiye Petrol Rafinerileri |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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