Correlation Between Koza Anadolu and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu 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 Koza Anadolu and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and Borlease Otomotiv AS, you can compare the effects of market volatilities on Koza Anadolu 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 Koza Anadolu with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Borlease Otomotiv.
Diversification Opportunities for Koza Anadolu and Borlease Otomotiv
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Koza and Borlease is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Koza Anadolu 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 Koza Anadolu Metal 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 Koza Anadolu i.e., Koza Anadolu and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Koza Anadolu and Borlease Otomotiv
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 2.16 times less return on investment than Borlease Otomotiv. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.09 times less risky than Borlease Otomotiv. It trades about 0.04 of its potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,732 in Borlease Otomotiv AS on August 28, 2024 and sell it today you would earn a total of 2,248 from holding Borlease Otomotiv AS or generate 82.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.69% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Koza Anadolu Metal |
| Borlease Otomotiv |
Koza Anadolu and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Borlease Otomotiv
The main advantage of trading using opposite Koza Anadolu and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu 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.| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi |
| Borlease Otomotiv vs. Turkish Airlines | Borlease Otomotiv vs. Koc Holding AS | Borlease Otomotiv vs. Ford Otomotiv Sanayi | Borlease Otomotiv vs. Turkiye Petrol Rafinerileri |
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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