Correlation Between Borusan Yatirim and Kocaer Celik
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Kocaer Celik 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 Kocaer Celik 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 Kocaer Celik Sanayi, you can compare the effects of market volatilities on Borusan Yatirim and Kocaer Celik 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 Kocaer Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Kocaer Celik.
Diversification Opportunities for Borusan Yatirim and Kocaer Celik
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borusan and Kocaer is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Kocaer Celik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kocaer Celik Sanayi 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 Kocaer Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kocaer Celik Sanayi has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Kocaer Celik go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Kocaer Celik
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to generate 1.02 times more return on investment than Kocaer Celik. However, Borusan Yatirim is 1.02 times more volatile than Kocaer Celik Sanayi. It trades about 0.24 of its potential returns per unit of risk. Kocaer Celik Sanayi is currently generating about 0.2 per unit of risk. If you would invest 196,300 in Borusan Yatirim ve on August 31, 2024 and sell it today you would earn a total of 23,400 from holding Borusan Yatirim ve or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borusan Yatirim ve vs. Kocaer Celik Sanayi
Performance |
| Timeline |
| Borusan Yatirim ve |
| Kocaer Celik Sanayi |
Borusan Yatirim and Kocaer Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Kocaer Celik
The main advantage of trading using opposite Borusan Yatirim and Kocaer Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Kocaer Celik 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 Kocaer Celik will offset losses from the drop in Kocaer Celik's long position.| Borusan Yatirim vs. Turkiye Garanti Bankasi | Borusan Yatirim vs. Yapi ve Kredi | Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Koc Holding AS |
| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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