Correlation Between Cemtas Celik and Borusan Yatirim

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

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

Diversification Opportunities for Cemtas Celik and Borusan Yatirim

0.09

Correlation Coefficient

Cemtas Celik  Borusan Yatirim

Significant diversification

The 3 months correlation between Cemtas and Borusan is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina 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 Cemtas Celik 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 Cemtas Celik Makina 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 Cemtas Celik i.e., Cemtas Celik and Borusan Yatirim go up and down completely randomly.

Pair Corralation between Cemtas Celik and Borusan Yatirim

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 1.17 times more return on investment than Borusan Yatirim. However, Cemtas Celik is 1.17 times more volatile than Borusan Yatirim ve. It trades about 0.03 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about -0.03 per unit of risk. If you would invest  951.00  in Cemtas Celik Makina on December 29, 2024 and sell it today you would earn a total of  29.00  from holding Cemtas Celik Makina or generate 3.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Cemtas Celik Makina  vs.  Borusan Yatirim ve

Cemtas Celik Makina

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Cemtas Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

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 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.

Pair Trading with Cemtas Celik and Borusan Yatirim

The main advantage of trading using opposite Cemtas Celik and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik 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.

The idea behind Cemtas Celik Makina and Borusan Yatirim ve 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.