Correlation Between Guler Yatirim and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Guler Yatirim 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 Guler Yatirim and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guler Yatirim Holding and Borlease Otomotiv AS, you can compare the effects of market volatilities on Guler Yatirim 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 Guler Yatirim with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and Borlease Otomotiv.
Diversification Opportunities for Guler Yatirim and Borlease Otomotiv
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guler and Borlease is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Guler Yatirim 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 Guler Yatirim Holding 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 Guler Yatirim i.e., Guler Yatirim and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Guler Yatirim and Borlease Otomotiv
Assuming the 90 days trading horizon Guler Yatirim Holding is expected to under-perform the Borlease Otomotiv. In addition to that, Guler Yatirim is 1.2 times more volatile than Borlease Otomotiv AS. It trades about -0.17 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.15 per unit of volatility. If you would invest 6,680 in Borlease Otomotiv AS on October 20, 2024 and sell it today you would earn a total of 470.00 from holding Borlease Otomotiv AS or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guler Yatirim Holding vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Guler Yatirim Holding |
| Borlease Otomotiv |
Guler Yatirim and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guler Yatirim and Borlease Otomotiv
The main advantage of trading using opposite Guler Yatirim and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guler Yatirim 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.| Guler Yatirim vs. Tofas Turk Otomobil | Guler Yatirim vs. Eregli Demir ve | Guler Yatirim vs. Turkiye Sise ve | Guler Yatirim vs. Aksa Akrilik Kimya |
| Borlease Otomotiv vs. Koza Anadolu Metal | Borlease Otomotiv vs. Datagate Bilgisayar Malzemeleri | Borlease Otomotiv vs. ICBC Turkey Bank | Borlease Otomotiv vs. Turkish Airlines |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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