Correlation Between Borusan Yatirim and Trabzonspor Sportif

Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Trabzonspor Sportif 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 Trabzonspor Sportif 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 Trabzonspor Sportif Yatirim, you can compare the effects of market volatilities on Borusan Yatirim and Trabzonspor Sportif 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 Trabzonspor Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Trabzonspor Sportif.

Diversification Opportunities for Borusan Yatirim and Trabzonspor Sportif

0.08

Correlation Coefficient

Borusan Yatirim  Trabzonspor Sportif

Significant diversification

The 3 months correlation between Borusan and Trabzonspor is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Trabzonspor Sportif Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzonspor Sportif 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 Trabzonspor Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzonspor Sportif has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Trabzonspor Sportif go up and down completely randomly.

Pair Corralation between Borusan Yatirim and Trabzonspor Sportif

Assuming the 90 days trading horizon Borusan Yatirim ve is expected to under-perform the Trabzonspor Sportif. But the stock apears to be less risky and, when comparing its historical volatility, Borusan Yatirim ve is 1.49 times less risky than Trabzonspor Sportif. The stock trades about -0.06 of its potential returns per unit of risk. The Trabzonspor Sportif Yatirim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  94.00  in Trabzonspor Sportif Yatirim on December 27, 2024 and sell it today you would earn a total of  4.00  from holding Trabzonspor Sportif Yatirim or generate 4.26% 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.  Trabzonspor Sportif Yatirim

Borusan Yatirim ve

Risk-Adjusted Performance

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 latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Trabzonspor Sportif

Risk-Adjusted Performance

Weak

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

Pair Trading with Borusan Yatirim and Trabzonspor Sportif

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

The idea behind Borusan Yatirim ve and Trabzonspor Sportif Yatirim 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.