Correlation Between Turkish Airlines and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines 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 Turkish Airlines and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Borlease Otomotiv AS, you can compare the effects of market volatilities on Turkish Airlines 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 Turkish Airlines with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Borlease Otomotiv.
Diversification Opportunities for Turkish Airlines and Borlease Otomotiv
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkish and Borlease is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Turkish Airlines 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 Turkish Airlines 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 Turkish Airlines i.e., Turkish Airlines and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Turkish Airlines and Borlease Otomotiv
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 7.11 times less return on investment than Borlease Otomotiv. But when comparing it to its historical volatility, Turkish Airlines is 1.44 times less risky than Borlease Otomotiv. It trades about 0.07 of its potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 4,270 in Borlease Otomotiv AS on August 25, 2024 and sell it today you would earn a total of 750.00 from holding Borlease Otomotiv AS or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Turkish Airlines |
| Borlease Otomotiv |
Turkish Airlines and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Borlease Otomotiv
The main advantage of trading using opposite Turkish Airlines and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines 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.| Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Pegasus Hava Tasimaciligi | Turkish Airlines vs. Turkiye Sise ve |
| Borlease Otomotiv vs. Cuhadaroglu Metal Sanayi | Borlease Otomotiv vs. Sodas Sodyum Sanayi | Borlease Otomotiv vs. Gentas Genel Metal | Borlease Otomotiv vs. Silverline Endustri ve |
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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