Correlation Between Cuhadaroglu Metal and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal 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 Cuhadaroglu Metal and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Borusan Yatirim ve, you can compare the effects of market volatilities on Cuhadaroglu Metal 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 Cuhadaroglu Metal with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Borusan Yatirim.
Diversification Opportunities for Cuhadaroglu Metal and Borusan Yatirim
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cuhadaroglu and Borusan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi 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 Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi 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 Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Borusan Yatirim
Assuming the 90 days trading horizon Cuhadaroglu Metal is expected to generate 2.49 times less return on investment than Borusan Yatirim. But when comparing it to its historical volatility, Cuhadaroglu Metal Sanayi is 1.37 times less risky than Borusan Yatirim. It trades about 0.1 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 195,300 in Borusan Yatirim ve on September 13, 2024 and sell it today you would earn a total of 17,200 from holding Borusan Yatirim ve or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Borusan Yatirim ve
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Borusan Yatirim ve |
Cuhadaroglu Metal and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Borusan Yatirim
The main advantage of trading using opposite Cuhadaroglu Metal and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal 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.| Cuhadaroglu Metal vs. Galatasaray Sportif Sinai | Cuhadaroglu Metal vs. Borlease Otomotiv AS | Cuhadaroglu Metal vs. Politeknik Metal Sanayi | Cuhadaroglu Metal vs. Trabzonspor Sportif Yatirim |
| Borusan Yatirim vs. Gentas Genel Metal | Borusan Yatirim vs. Koza Anadolu Metal | Borusan Yatirim vs. Sekerbank TAS | Borusan Yatirim vs. E Data Teknoloji Pazarlama |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |