Correlation Between Is Yatirim and Borusan Yatirim

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

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

Diversification Opportunities for Is Yatirim and Borusan Yatirim

0.8

Correlation Coefficient

Is Yatirim  Borusan Yatirim

Very poor diversification

The 3 months correlation between ISMEN and Borusan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Menkul 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 Is 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 Is Yatirim Menkul 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 Is Yatirim i.e., Is Yatirim and Borusan Yatirim go up and down completely randomly.

Pair Corralation between Is Yatirim and Borusan Yatirim

Assuming the 90 days trading horizon Is Yatirim is expected to generate 1.17 times less return on investment than Borusan Yatirim. In addition to that, Is Yatirim is 1.31 times more volatile than Borusan Yatirim ve. It trades about 0.18 of its total potential returns per unit of risk. Borusan Yatirim ve is currently generating about 0.28 per unit of volatility. If you would invest  199,800  in Borusan Yatirim ve on September 23, 2024 and sell it today you would earn a total of  24,200  from holding Borusan Yatirim ve or generate 12.11% return on investment over 90 days.

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

Is Yatirim Menkul  vs.  Borusan Yatirim ve

Is Yatirim Menkul

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Borusan Yatirim ve

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Borusan Yatirim ve are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Borusan Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Is Yatirim and Borusan Yatirim

The main advantage of trading using opposite Is Yatirim and Borusan Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim 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 Is Yatirim Menkul 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.