Correlation Between Borlease Otomotiv and Peker Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv and Peker Gayrimenkul 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 Peker Gayrimenkul 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 Peker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Borlease Otomotiv and Peker Gayrimenkul 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 Peker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Peker Gayrimenkul.
Diversification Opportunities for Borlease Otomotiv and Peker Gayrimenkul
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Borlease and Peker is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Peker Gayrimenkul go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Peker Gayrimenkul
Assuming the 90 days trading horizon Borlease Otomotiv is expected to generate 1.54 times less return on investment than Peker Gayrimenkul. But when comparing it to its historical volatility, Borlease Otomotiv AS is 3.77 times less risky than Peker Gayrimenkul. It trades about 0.11 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 85.00 in Peker Gayrimenkul Yatirim on October 22, 2024 and sell it today you would earn a total of 65.00 from holding Peker Gayrimenkul Yatirim or generate 76.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 63.64% |
Values | Daily Returns |
Borlease Otomotiv AS vs. Peker Gayrimenkul Yatirim
Performance |
Timeline |
Borlease Otomotiv |
Peker Gayrimenkul Yatirim |
Borlease Otomotiv and Peker Gayrimenkul Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Borlease Otomotiv and Peker Gayrimenkul
The main advantage of trading using opposite Borlease Otomotiv and Peker Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv position performs unexpectedly, Peker Gayrimenkul 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 Peker Gayrimenkul will offset losses from the drop in Peker Gayrimenkul's long position.Borlease Otomotiv vs. Sodas Sodyum Sanayi | Borlease Otomotiv vs. Mackolik Internet Hizmetleri | Borlease Otomotiv vs. MEGA METAL | Borlease Otomotiv vs. KOC METALURJI |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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