Correlation Between Borusan Yatirim and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on Borusan Yatirim and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Izmir Demir.
Diversification Opportunities for Borusan Yatirim and Izmir Demir
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borusan and Izmir is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Izmir Demir go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Izmir Demir
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to under-perform the Izmir Demir. In addition to that, Borusan Yatirim is 1.46 times more volatile than Izmir Demir Celik. It trades about -0.01 of its total potential returns per unit of risk. Izmir Demir Celik is currently generating about -0.01 per unit of volatility. If you would invest 554.00 in Izmir Demir Celik on November 3, 2024 and sell it today you would lose (28.00) from holding Izmir Demir Celik or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borusan Yatirim ve vs. Izmir Demir Celik
Performance |
| Timeline |
| Borusan Yatirim ve |
| Izmir Demir Celik |
Borusan Yatirim and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Izmir Demir
The main advantage of trading using opposite Borusan Yatirim and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir's long position.| Borusan Yatirim vs. Mackolik Internet Hizmetleri | Borusan Yatirim vs. Bms Birlesik Metal | Borusan Yatirim vs. Qnb Finansbank AS | Borusan Yatirim vs. KOC METALURJI |
| Izmir Demir vs. Gentas Genel Metal | Izmir Demir vs. MEGA METAL | Izmir Demir vs. Koza Anadolu Metal | Izmir Demir vs. Cuhadaroglu Metal Sanayi |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |