Correlation Between Borlease Otomotiv and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and KOC METALURJI 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 KOC METALURJI 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 KOC METALURJI, you can compare the effects of market volatilities on Borlease Otomotiv and KOC METALURJI 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 KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and KOC METALURJI.
Diversification Opportunities for Borlease Otomotiv and KOC METALURJI
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Borlease and KOC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI 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 KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and KOC METALURJI go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and KOC METALURJI
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 0.95 times more return on investment than KOC METALURJI. However, Borlease Otomotiv AS is 1.05 times less risky than KOC METALURJI. It trades about 0.26 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.14 per unit of risk. If you would invest 5,835 in Borlease Otomotiv AS on October 11, 2024 and sell it today you would earn a total of 770.00 from holding Borlease Otomotiv AS or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. KOC METALURJI
Performance |
| Timeline |
| Borlease Otomotiv |
| KOC METALURJI |
Borlease Otomotiv and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and KOC METALURJI
The main advantage of trading using opposite Borlease Otomotiv and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, KOC METALURJI 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 KOC METALURJI will offset losses from the drop in KOC METALURJI's long position.| Borlease Otomotiv vs. Gentas Genel Metal | Borlease Otomotiv vs. KOC METALURJI | Borlease Otomotiv vs. Politeknik Metal Sanayi | Borlease Otomotiv vs. Mackolik Internet Hizmetleri |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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