Correlation Between Borusan Yatirim and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Konya Cimento 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 Konya Cimento 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 Konya Cimento Sanayi, you can compare the effects of market volatilities on Borusan Yatirim and Konya Cimento 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 Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Konya Cimento.
Diversification Opportunities for Borusan Yatirim and Konya Cimento
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borusan and Konya is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento 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 Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Konya Cimento go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Konya Cimento
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to generate 1.33 times more return on investment than Konya Cimento. However, Borusan Yatirim is 1.33 times more volatile than Konya Cimento Sanayi. It trades about 0.1 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about 0.07 per unit of risk. If you would invest 172,400 in Borusan Yatirim ve on August 28, 2024 and sell it today you would earn a total of 35,100 from holding Borusan Yatirim ve or generate 20.36% 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. Konya Cimento Sanayi
Performance |
| Timeline |
| Borusan Yatirim ve |
| Konya Cimento Sanayi |
Borusan Yatirim and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Konya Cimento
The main advantage of trading using opposite Borusan Yatirim and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Konya Cimento 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 Konya Cimento will offset losses from the drop in Konya Cimento's long position.| Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Haci Omer Sabanci | Borusan Yatirim vs. Turkiye Halk Bankasi |
| Konya Cimento vs. Qnb Finansbank AS | Konya Cimento vs. QNB Finans Finansal | Konya Cimento vs. Turkiye Kalkinma Bankasi | Konya Cimento vs. Kocaer Celik 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |