Correlation Between Borusan Yatirim and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Turkiye Garanti 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 Borusan Yatirim and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borusan Yatirim ve and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Borusan Yatirim and Turkiye Garanti 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 Borusan Yatirim with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Turkiye Garanti.
Diversification Opportunities for Borusan Yatirim and Turkiye Garanti
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Borusan and Turkiye is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and Borusan Yatirim 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 Borusan Yatirim ve are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Turkiye Garanti
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to under-perform the Turkiye Garanti. In addition to that, Borusan Yatirim is 1.26 times more volatile than Turkiye Garanti Bankasi. It trades about -0.02 of its total potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.06 per unit of volatility. If you would invest 10,430 in Turkiye Garanti Bankasi on September 2, 2024 and sell it today you would earn a total of 1,620 from holding Turkiye Garanti Bankasi or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borusan Yatirim ve vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Borusan Yatirim ve |
| Turkiye Garanti Bankasi |
Borusan Yatirim and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Turkiye Garanti
The main advantage of trading using opposite Borusan Yatirim and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.| Borusan Yatirim vs. Gentas Genel Metal | Borusan Yatirim vs. Sodas Sodyum Sanayi | Borusan Yatirim vs. Silverline Endustri ve | Borusan Yatirim vs. Trabzonspor Sportif Yatirim |
| Turkiye Garanti vs. Akbank TAS | Turkiye Garanti vs. Turkiye Is Bankasi | Turkiye Garanti vs. Yapi ve Kredi | Turkiye Garanti vs. Turkish Airlines |
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 CEOs Directory module to screen CEOs from public companies around the world.
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