Correlation Between Ege Profil and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Ege Profil and Borlease Otomotiv 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 Profil and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Profil Ticaret and Borlease Otomotiv AS, you can compare the effects of market volatilities on Ege Profil and Borlease Otomotiv 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 Profil with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Profil and Borlease Otomotiv.
Diversification Opportunities for Ege Profil and Borlease Otomotiv
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ege and Borlease is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ege Profil Ticaret and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Ege Profil 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 Profil Ticaret are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Ege Profil i.e., Ege Profil and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Ege Profil and Borlease Otomotiv
Assuming the 90 days trading horizon Ege Profil Ticaret is expected to under-perform the Borlease Otomotiv. In addition to that, Ege Profil is 1.06 times more volatile than Borlease Otomotiv AS. It trades about -0.18 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.53 per unit of volatility. If you would invest 7,300 in Borlease Otomotiv AS on November 27, 2024 and sell it today you would earn a total of 1,400 from holding Borlease Otomotiv AS or generate 19.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Profil Ticaret vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Ege Profil Ticaret |
| Borlease Otomotiv |
Ege Profil and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Profil and Borlease Otomotiv
The main advantage of trading using opposite Ege Profil and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Profil position performs unexpectedly, Borlease Otomotiv 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 Borlease Otomotiv will offset losses from the drop in Borlease Otomotiv's long position.| Ege Profil vs. Koza Anadolu Metal | Ege Profil vs. Sodas Sodyum Sanayi | Ege Profil vs. Bms Birlesik Metal | Ege Profil vs. MEGA METAL |
| Borlease Otomotiv vs. MEGA METAL | Borlease Otomotiv vs. Turkiye Kalkinma Bankasi | Borlease Otomotiv vs. Creditwest Faktoring AS | Borlease Otomotiv vs. Bms Birlesik 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |