Correlation Between Ege Endustri and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Ege Endustri 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 Ege Endustri and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Endustri ve and Borusan Yatirim ve, you can compare the effects of market volatilities on Ege Endustri 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 Ege Endustri with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Borusan Yatirim.
Diversification Opportunities for Ege Endustri and Borusan Yatirim
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ege and Borusan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve 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 Ege Endustri 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 Ege Endustri ve 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 Ege Endustri i.e., Ege Endustri and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Ege Endustri and Borusan Yatirim
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Borusan Yatirim. In addition to that, Ege Endustri is 1.11 times more volatile than Borusan Yatirim ve. It trades about -0.03 of its total potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.18 per unit of volatility. 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 |
Ege Endustri ve vs. Borusan Yatirim ve
Performance |
| Timeline |
| Ege Endustri ve |
| Borusan Yatirim ve |
Ege Endustri and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Borusan Yatirim
The main advantage of trading using opposite Ege Endustri and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri 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.| Ege Endustri vs. Qnb Finansbank AS | Ege Endustri vs. Kent Gida Maddeleri | Ege Endustri vs. QNB Finans Finansal | Ege Endustri vs. Turkiye Kalkinma Bankasi |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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