Correlation Between E Data and Borusan Yatirim

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

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

Diversification Opportunities for E Data and Borusan Yatirim

0.18

Correlation Coefficient

E Data  Borusan Yatirim

Average diversification

The 3 months correlation between EDATA and Borusan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama 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 E Data 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 E Data Teknoloji Pazarlama 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 E Data i.e., E Data and Borusan Yatirim go up and down completely randomly.

Pair Corralation between E Data and Borusan Yatirim

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Borusan Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, E Data Teknoloji Pazarlama is 1.01 times less risky than Borusan Yatirim. The stock trades about -0.04 of its potential returns per unit of risk. The Borusan Yatirim ve is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  202,000  in Borusan Yatirim ve on October 9, 2024 and sell it today you would earn a total of  1,900  from holding Borusan Yatirim ve or generate 0.94% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  Borusan Yatirim ve

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, E Data 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

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Borusan Yatirim ve are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Borusan Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E Data and Borusan Yatirim

The main advantage of trading using opposite E Data and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data 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 E Data Teknoloji Pazarlama 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.