Correlation Between Borlease Otomotiv and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Guler Yatirim 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 Guler Yatirim 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 Guler Yatirim Holding, you can compare the effects of market volatilities on Borlease Otomotiv and Guler Yatirim 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 Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Guler Yatirim.
Diversification Opportunities for Borlease Otomotiv and Guler Yatirim
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borlease and Guler is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Guler Yatirim go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Guler Yatirim
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 1.65 times more return on investment than Guler Yatirim. However, Borlease Otomotiv is 1.65 times more volatile than Guler Yatirim Holding. It trades about 0.43 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.24 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Guler Yatirim Holding
Performance |
| Timeline |
| Borlease Otomotiv |
| Guler Yatirim Holding |
Borlease Otomotiv and Guler Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Guler Yatirim
The main advantage of trading using opposite Borlease Otomotiv and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim'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 |
| Guler Yatirim vs. CEO Event Medya | Guler Yatirim vs. Cuhadaroglu Metal Sanayi | Guler Yatirim vs. Turkiye Kalkinma Bankasi | Guler Yatirim vs. Gentas Genel Metal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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