Correlation Between Mackolik Internet and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Mackolik Internet 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 Mackolik Internet and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackolik Internet Hizmetleri and Borlease Otomotiv AS, you can compare the effects of market volatilities on Mackolik Internet 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 Mackolik Internet with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Borlease Otomotiv.
Diversification Opportunities for Mackolik Internet and Borlease Otomotiv
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mackolik and Borlease is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Mackolik Internet 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 Mackolik Internet Hizmetleri 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 Mackolik Internet i.e., Mackolik Internet and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Mackolik Internet and Borlease Otomotiv
Assuming the 90 days trading horizon Mackolik Internet is expected to generate 1.02 times less return on investment than Borlease Otomotiv. In addition to that, Mackolik Internet is 1.09 times more volatile than Borlease Otomotiv AS. It trades about 0.07 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.08 per unit of volatility. If you would invest 2,732 in Borlease Otomotiv AS on August 25, 2024 and sell it today you would earn a total of 2,288 from holding Borlease Otomotiv AS or generate 83.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.66% |
| Values | Daily Returns |
Mackolik Internet Hizmetleri vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Mackolik Internet |
| Borlease Otomotiv |
Mackolik Internet and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackolik Internet and Borlease Otomotiv
The main advantage of trading using opposite Mackolik Internet and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackolik Internet 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.| Mackolik Internet vs. Pamel Yenilenebilir Elektrik | Mackolik Internet vs. Brisa Bridgestone Sabanci | Mackolik Internet vs. Dogus Gayrimenkul Yatirim | Mackolik Internet vs. IZDEMIR Enerji Elektrik |
| Borlease Otomotiv vs. Mackolik Internet Hizmetleri | Borlease Otomotiv vs. Koza Anadolu Metal | Borlease Otomotiv vs. Cuhadaroglu Metal Sanayi | Borlease Otomotiv vs. Sodas Sodyum Sanayi |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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