Correlation Between Borusan Yatirim and Atlantis Yatirim

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

By analyzing existing cross correlation between Borusan Yatirim ve and Atlantis Yatirim Holding, you can compare the effects of market volatilities on Borusan Yatirim and Atlantis 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 Borusan Yatirim with a short position of Atlantis Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Atlantis Yatirim.

Diversification Opportunities for Borusan Yatirim and Atlantis Yatirim

0.07

Correlation Coefficient

Borusan Yatirim  Atlantis Yatirim

Significant diversification

The 3 months correlation between Borusan and Atlantis is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Atlantis Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis Yatirim Holding and Borusan Yatirim 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 Borusan Yatirim ve are associated (or correlated) with Atlantis Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis Yatirim Holding has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Atlantis Yatirim go up and down completely randomly.

Pair Corralation between Borusan Yatirim and Atlantis Yatirim

Assuming the 90 days trading horizon Borusan Yatirim is expected to generate 44.48 times less return on investment than Atlantis Yatirim. But when comparing it to its historical volatility, Borusan Yatirim ve is 1.68 times less risky than Atlantis Yatirim. It trades about 0.0 of its potential returns per unit of risk. Atlantis Yatirim Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,226  in Atlantis Yatirim Holding on October 22, 2024 and sell it today you would earn a total of  136.00  from holding Atlantis Yatirim Holding or generate 3.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Borusan Yatirim ve  vs.  Atlantis Yatirim Holding

Borusan Yatirim ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Borusan Yatirim ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Borusan Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Atlantis Yatirim Holding

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantis Yatirim Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Atlantis Yatirim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Borusan Yatirim and Atlantis Yatirim

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

The idea behind Borusan Yatirim ve and Atlantis Yatirim Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.