Correlation Between Celebi Hava and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Celebi Hava 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 Celebi Hava and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebi Hava Servisi and Borusan Yatirim ve, you can compare the effects of market volatilities on Celebi Hava 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 Celebi Hava with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebi Hava and Borusan Yatirim.
Diversification Opportunities for Celebi Hava and Borusan Yatirim
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celebi and Borusan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Celebi Hava Servisi 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 Celebi Hava 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 Celebi Hava Servisi 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 Celebi Hava i.e., Celebi Hava and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Celebi Hava and Borusan Yatirim
Assuming the 90 days trading horizon Celebi Hava is expected to generate 1.03 times less return on investment than Borusan Yatirim. But when comparing it to its historical volatility, Celebi Hava Servisi is 1.38 times less risky than Borusan Yatirim. It trades about 0.14 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebi Hava Servisi vs. Borusan Yatirim ve
Performance |
| Timeline |
| Celebi Hava Servisi |
| Borusan Yatirim ve |
Celebi Hava and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebi Hava and Borusan Yatirim
The main advantage of trading using opposite Celebi Hava and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebi Hava 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.| Celebi Hava vs. QNB Finans Finansal | Celebi Hava vs. Pamel Yenilenebilir Elektrik | Celebi Hava vs. Brisa Bridgestone Sabanci | Celebi Hava vs. Dogus Gayrimenkul Yatirim |
| Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Haci Omer Sabanci | Borusan Yatirim vs. Turkiye Halk Bankasi |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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