Correlation Between Borlease Otomotiv and Flap Kongre

Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Flap Kongre 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 Borlease Otomotiv and Flap Kongre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Borlease Otomotiv AS and Flap Kongre Toplanti, you can compare the effects of market volatilities on Borlease Otomotiv and Flap Kongre 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 Borlease Otomotiv with a short position of Flap Kongre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Flap Kongre.

Diversification Opportunities for Borlease Otomotiv and Flap Kongre

-0.35

Correlation Coefficient

Borlease Otomotiv  Flap Kongre

Very good diversification

The 3 months correlation between Borlease and Flap is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti and Borlease 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 Borlease Otomotiv AS are associated (or correlated) with Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Flap Kongre go up and down completely randomly.

Pair Corralation between Borlease Otomotiv and Flap Kongre

Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 0.84 times more return on investment than Flap Kongre. However, Borlease Otomotiv AS is 1.19 times less risky than Flap Kongre. It trades about 0.49 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about 0.12 per unit of risk. If you would invest  4,224  in Borlease Otomotiv AS on October 6, 2024 and sell it today you would earn a total of  2,671  from holding Borlease Otomotiv AS or generate 63.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Borlease Otomotiv AS  vs.  Flap Kongre Toplanti

Borlease Otomotiv

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Borlease Otomotiv AS are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Borlease Otomotiv demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Flap Kongre is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Borlease Otomotiv and Flap Kongre

The main advantage of trading using opposite Borlease Otomotiv and Flap Kongre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Flap Kongre 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 Flap Kongre will offset losses from the drop in Flap Kongre's long position.

The idea behind Borlease Otomotiv AS and Flap Kongre Toplanti pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.