Correlation Between Turkish Airlines and Borusan Yatirim
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines 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 Turkish Airlines and Borusan Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Borusan Yatirim ve, you can compare the effects of market volatilities on Turkish Airlines 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 Turkish Airlines with a short position of Borusan Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Borusan Yatirim.
Diversification Opportunities for Turkish Airlines and Borusan Yatirim
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turkish and Borusan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines 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 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 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 Turkish Airlines i.e., Turkish Airlines and Borusan Yatirim go up and down completely randomly.
Pair Corralation between Turkish Airlines and Borusan Yatirim
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 1.13 times less return on investment than Borusan Yatirim. But when comparing it to its historical volatility, Turkish Airlines is 1.0 times less risky than Borusan Yatirim. It trades about 0.16 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 193,000 in Borusan Yatirim ve on August 28, 2024 and sell it today you would earn a total of 14,500 from holding Borusan Yatirim ve or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Borusan Yatirim ve
Performance |
| Timeline |
| Turkish Airlines |
| Borusan Yatirim ve |
Turkish Airlines and Borusan Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Borusan Yatirim
The main advantage of trading using opposite Turkish Airlines and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines 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.| Turkish Airlines vs. QNB Finans Finansal | Turkish Airlines vs. Pamel Yenilenebilir Elektrik | Turkish Airlines vs. Brisa Bridgestone Sabanci | Turkish Airlines vs. Dogus Gayrimenkul Yatirim |
| Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Turkiye Is Bankasi | Borusan Yatirim vs. Haci Omer Sabanci | Borusan Yatirim vs. Turkiye Halk Bankasi |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings 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 |