Correlation Between Borusan Yatirim and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Pegasus Hava 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 Pegasus Hava 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 Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Borusan Yatirim and Pegasus Hava 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 Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Pegasus Hava.
Diversification Opportunities for Borusan Yatirim and Pegasus Hava
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borusan and Pegasus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Pegasus Hava Tasimaciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hava Tasimaciligi 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 Pegasus Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hava Tasimaciligi has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Pegasus Hava go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Pegasus Hava
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to generate 1.03 times more return on investment than Pegasus Hava. However, Borusan Yatirim is 1.03 times more volatile than Pegasus Hava Tasimaciligi. It trades about 0.18 of its potential returns per unit of risk. Pegasus Hava Tasimaciligi is currently generating about -0.09 per unit of risk. If you would invest 193,000 in Borusan Yatirim ve on August 28, 2024 and sell it today you would earn a total of 14,500 from holding Borusan Yatirim ve or generate 7.51% 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. Pegasus Hava Tasimaciligi
Performance |
| Timeline |
| Borusan Yatirim ve |
| Pegasus Hava Tasimaciligi |
Borusan Yatirim and Pegasus Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Pegasus Hava
The main advantage of trading using opposite Borusan Yatirim and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Pegasus Hava 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 Pegasus Hava will offset losses from the drop in Pegasus Hava'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 |
| Pegasus Hava vs. QNB Finans Finansal | Pegasus Hava vs. Pamel Yenilenebilir Elektrik | Pegasus Hava vs. Brisa Bridgestone Sabanci | Pegasus Hava vs. Dogus Gayrimenkul Yatirim |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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