Correlation Between Borlease Otomotiv and Tumosan
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Tumosan 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 Tumosan 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 Tumosan Motor ve, you can compare the effects of market volatilities on Borlease Otomotiv and Tumosan 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 Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Tumosan.
Diversification Opportunities for Borlease Otomotiv and Tumosan
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Borlease and Tumosan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve 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 Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Tumosan go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Tumosan
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 0.88 times more return on investment than Tumosan. However, Borlease Otomotiv AS is 1.13 times less risky than Tumosan. It trades about 0.09 of its potential returns per unit of risk. Tumosan Motor ve is currently generating about 0.04 per unit of risk. If you would invest 2,732 in Borlease Otomotiv AS on September 12, 2024 and sell it today you would earn a total of 3,103 from holding Borlease Otomotiv AS or generate 113.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.23% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Tumosan Motor ve
Performance |
| Timeline |
| Borlease Otomotiv |
| Tumosan Motor ve |
Borlease Otomotiv and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Tumosan
The main advantage of trading using opposite Borlease Otomotiv and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| Borlease Otomotiv vs. ICBC Turkey Bank | Borlease Otomotiv vs. Koza Anadolu Metal | Borlease Otomotiv vs. Politeknik Metal Sanayi | Borlease Otomotiv vs. Akbank TAS |
| Tumosan vs. Cuhadaroglu Metal Sanayi | Tumosan vs. Akcansa Cimento Sanayi | Tumosan vs. Borlease Otomotiv AS | Tumosan vs. Koza Anadolu 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |