Correlation Between Borlease Otomotiv and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Turkish Airlines 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 Turkish Airlines 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 Turkish Airlines, you can compare the effects of market volatilities on Borlease Otomotiv and Turkish Airlines 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 Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Turkish Airlines.
Diversification Opportunities for Borlease Otomotiv and Turkish Airlines
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Borlease and Turkish is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines 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 Turkish Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkish Airlines has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Turkish Airlines go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Turkish Airlines
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 1.14 times more return on investment than Turkish Airlines. However, Borlease Otomotiv is 1.14 times more volatile than Turkish Airlines. It trades about 0.35 of its potential returns per unit of risk. Turkish Airlines is currently generating about 0.13 per unit of risk. If you would invest 4,236 in Borlease Otomotiv AS on August 28, 2024 and sell it today you would earn a total of 799.00 from holding Borlease Otomotiv AS or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Turkish Airlines
Performance |
| Timeline |
| Borlease Otomotiv |
| Turkish Airlines |
Borlease Otomotiv and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Turkish Airlines
The main advantage of trading using opposite Borlease Otomotiv and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Turkish Airlines 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 Turkish Airlines will offset losses from the drop in Turkish Airlines' 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 |
| Turkish Airlines vs. QNB Finans Finansal | Turkish Airlines vs. Pamel Yenilenebilir Elektrik | Turkish Airlines vs. Brisa Bridgestone Sabanci | Turkish Airlines vs. Dogus Gayrimenkul Yatirim |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |