Correlation Between Cemtas Celik and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Cemtas Celik and Borusan Yatirim 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 Cemtas Celik and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtas Celik Makina and Borusan Yatirim ve, you can compare the effects of market volatilities on Cemtas Celik and Borusan Yatirim 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 Cemtas Celik with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Borusan Yatirim.
Diversification Opportunities for Cemtas Celik and Borusan Yatirim
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cemtas and Borusan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Borusan Yatirim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borusan Yatirim ve and Cemtas Celik 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 Cemtas Celik Makina are associated (or correlated) with Borusan Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borusan Yatirim ve has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Cemtas Celik and Borusan Yatirim
Assuming the 90 days trading horizon Cemtas Celik Makina is expected to under-perform the Borusan Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Cemtas Celik Makina is 1.32 times less risky than Borusan Yatirim. The stock trades about -0.07 of its potential returns per unit of risk. The Borusan Yatirim ve is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 234,800 in Borusan Yatirim ve on September 3, 2024 and sell it today you would lose (9,700) from holding Borusan Yatirim ve or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cemtas Celik Makina vs. Borusan Yatirim ve
Performance |
| Timeline |
| Cemtas Celik Makina |
| Borusan Yatirim ve |
Cemtas Celik and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemtas Celik and Borusan Yatirim
The main advantage of trading using opposite Cemtas Celik and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik position performs unexpectedly, Borusan Yatirim 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 Borusan Yatirim will offset losses from the drop in Borusan Yatirim's long position.| Cemtas Celik vs. Qnb Finansbank AS | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Kocaer Celik Sanayi | Cemtas Celik vs. Cimentas Izmir Cimento |
| Borusan Yatirim vs. Politeknik Metal Sanayi | Borusan Yatirim vs. Gentas Genel Metal | Borusan Yatirim vs. Turkiye Kalkinma Bankasi | Borusan Yatirim vs. MEGA METAL |
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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