Correlation Between Is Girisim and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Is Girisim 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 Is Girisim and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Girisim Sermayesi and Borlease Otomotiv AS, you can compare the effects of market volatilities on Is Girisim 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 Is Girisim with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Girisim and Borlease Otomotiv.
Diversification Opportunities for Is Girisim and Borlease Otomotiv
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISGSY and Borlease is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Is Girisim Sermayesi and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Is Girisim 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 Is Girisim Sermayesi 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 Is Girisim i.e., Is Girisim and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Is Girisim and Borlease Otomotiv
Assuming the 90 days trading horizon Is Girisim is expected to generate 1.47 times less return on investment than Borlease Otomotiv. In addition to that, Is Girisim is 1.15 times more volatile than Borlease Otomotiv AS. It trades about 0.06 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.1 per unit of volatility. If you would invest 2,732 in Borlease Otomotiv AS on September 19, 2024 and sell it today you would earn a total of 3,658 from holding Borlease Otomotiv AS or generate 133.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 59.55% |
| Values | Daily Returns |
Is Girisim Sermayesi vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Is Girisim Sermayesi |
| Borlease Otomotiv |
Is Girisim and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Girisim and Borlease Otomotiv
The main advantage of trading using opposite Is Girisim and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Girisim 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.| Is Girisim vs. Politeknik Metal Sanayi | Is Girisim vs. Gentas Genel Metal | Is Girisim vs. Bms Birlesik Metal | Is Girisim vs. Cuhadaroglu Metal Sanayi |
| Borlease Otomotiv vs. Datagate Bilgisayar Malzemeleri | Borlease Otomotiv vs. Sodas Sodyum Sanayi | Borlease Otomotiv vs. E Data Teknoloji Pazarlama | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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