Correlation Between FinVolution and Borusan Yatirim

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

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

Diversification Opportunities for FinVolution and Borusan Yatirim

0.52

Correlation Coefficient

FinVolution  Borusan Yatirim

Very weak diversification

The 3 months correlation between FinVolution and Borusan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group 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 FinVolution 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 FinVolution Group 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 FinVolution i.e., FinVolution and Borusan Yatirim go up and down completely randomly.

Pair Corralation between FinVolution and Borusan Yatirim

Given the investment horizon of 90 days FinVolution Group is expected to generate 0.63 times more return on investment than Borusan Yatirim. However, FinVolution Group is 1.58 times less risky than Borusan Yatirim. It trades about 0.09 of its potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.0 per unit of risk. If you would invest  452.00  in FinVolution Group on October 5, 2024 and sell it today you would earn a total of  227.00  from holding FinVolution Group or generate 50.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.19%
Values	Daily Returns

FinVolution Group  vs.  Borusan Yatirim ve

FinVolution Group

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FinVolution Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, FinVolution is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Borusan Yatirim ve

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Borusan Yatirim ve are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Borusan Yatirim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FinVolution and Borusan Yatirim

The main advantage of trading using opposite FinVolution and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution 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 FinVolution Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.