Correlation Between Ihlas Gazetecilik and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik 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 Ihlas Gazetecilik and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Gazetecilik AS and Borlease Otomotiv AS, you can compare the effects of market volatilities on Ihlas Gazetecilik 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 Ihlas Gazetecilik with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Borlease Otomotiv.
Diversification Opportunities for Ihlas Gazetecilik and Borlease Otomotiv
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ihlas and Borlease is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS 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 Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Ihlas Gazetecilik and Borlease Otomotiv
Assuming the 90 days trading horizon Ihlas Gazetecilik is expected to generate 3.77 times less return on investment than Borlease Otomotiv. In addition to that, Ihlas Gazetecilik is 1.13 times more volatile than Borlease Otomotiv AS. It trades about 0.02 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.09 per unit of volatility. If you would invest 2,732 in Borlease Otomotiv AS on September 12, 2024 and sell it today you would earn a total of 3,103 from holding Borlease Otomotiv AS or generate 113.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 57.98% |
| Values | Daily Returns |
Ihlas Gazetecilik AS vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Ihlas Gazetecilik |
| Borlease Otomotiv |
Ihlas Gazetecilik and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Gazetecilik and Borlease Otomotiv
The main advantage of trading using opposite Ihlas Gazetecilik and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik 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.| Ihlas Gazetecilik vs. MEGA METAL | Ihlas Gazetecilik vs. Bms Birlesik Metal | Ihlas Gazetecilik vs. Akbank TAS | Ihlas Gazetecilik vs. Sekerbank TAS |
| Borlease Otomotiv vs. ICBC Turkey Bank | Borlease Otomotiv vs. Koza Anadolu Metal | Borlease Otomotiv vs. Politeknik Metal Sanayi | Borlease Otomotiv vs. Akbank TAS |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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