Correlation Between Otokar Otomotiv and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Otokar Otomotiv and Borusan Yatirim 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 Otokar Otomotiv and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otokar Otomotiv ve and Borusan Yatirim ve, you can compare the effects of market volatilities on Otokar Otomotiv and Borusan Yatirim 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 Otokar Otomotiv with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otokar Otomotiv and Borusan Yatirim.
Diversification Opportunities for Otokar Otomotiv and Borusan Yatirim
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Otokar and Borusan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Otokar Otomotiv ve and Borusan Yatirim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borusan Yatirim ve and Otokar Otomotiv 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 Otokar Otomotiv ve are associated (or correlated) with Borusan Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borusan Yatirim ve has no effect on the direction of Otokar Otomotiv i.e., Otokar Otomotiv and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Otokar Otomotiv and Borusan Yatirim
Assuming the 90 days trading horizon Otokar Otomotiv is expected to generate 1.14 times less return on investment than Borusan Yatirim. But when comparing it to its historical volatility, Otokar Otomotiv ve is 1.4 times less risky than Borusan Yatirim. It trades about 0.09 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 81,871 in Borusan Yatirim ve on August 24, 2024 and sell it today you would earn a total of 117,929 from holding Borusan Yatirim ve or generate 144.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otokar Otomotiv ve vs. Borusan Yatirim ve
Performance |
| Timeline |
| Otokar Otomotiv ve |
| Borusan Yatirim ve |
Otokar Otomotiv and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otokar Otomotiv and Borusan Yatirim
The main advantage of trading using opposite Otokar Otomotiv and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otokar Otomotiv position performs unexpectedly, Borusan Yatirim 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 Borusan Yatirim will offset losses from the drop in Borusan Yatirim's long position.| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv vs. Dogus Gayrimenkul Yatirim |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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