Correlation Between Borusan Yatirim and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and MEGA METAL 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 MEGA METAL 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 MEGA METAL, you can compare the effects of market volatilities on Borusan Yatirim and MEGA METAL 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 MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and MEGA METAL.
Diversification Opportunities for Borusan Yatirim and MEGA METAL
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Borusan and MEGA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and MEGA METAL go up and down completely randomly.
Pair Corralation between Borusan Yatirim and MEGA METAL
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to generate 1.48 times more return on investment than MEGA METAL. However, Borusan Yatirim is 1.48 times more volatile than MEGA METAL. It trades about 0.1 of its potential returns per unit of risk. MEGA METAL is currently generating about -0.05 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borusan Yatirim ve vs. MEGA METAL
Performance |
| Timeline |
| Borusan Yatirim ve |
| MEGA METAL |
Borusan Yatirim and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and MEGA METAL
The main advantage of trading using opposite Borusan Yatirim and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL'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 |
| MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi | MEGA METAL vs. Turkiye Petrol Rafinerileri |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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