Correlation Between Saray Matbaacilik and Borlease Otomotiv

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

By analyzing existing cross correlation between Saray Matbaacilik Kagitcilik and Borlease Otomotiv AS, you can compare the effects of market volatilities on Saray Matbaacilik and Borlease Otomotiv 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 Saray Matbaacilik with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saray Matbaacilik and Borlease Otomotiv.

Diversification Opportunities for Saray Matbaacilik and Borlease Otomotiv

-0.52

Correlation Coefficient

Saray Matbaacilik  Borlease Otomotiv

Excellent diversification

The 3 months correlation between Saray and Borlease is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Saray Matbaacilik Kagitcilik and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Saray Matbaacilik 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 Saray Matbaacilik Kagitcilik are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Saray Matbaacilik i.e., Saray Matbaacilik and Borlease Otomotiv go up and down completely randomly.

Pair Corralation between Saray Matbaacilik and Borlease Otomotiv

Assuming the 90 days trading horizon Saray Matbaacilik Kagitcilik is expected to under-perform the Borlease Otomotiv. In addition to that, Saray Matbaacilik is 1.34 times more volatile than Borlease Otomotiv AS. It trades about -0.05 of its total potential returns per unit of risk. Borlease Otomotiv AS is currently generating about 0.15 per unit of volatility. If you would invest  6,480  in Borlease Otomotiv AS on December 24, 2024 and sell it today you would earn a total of  1,540  from holding Borlease Otomotiv AS or generate 23.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Saray Matbaacilik Kagitcilik  vs.  Borlease Otomotiv AS

Saray Matbaacilik

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saray Matbaacilik Kagitcilik 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.

Borlease Otomotiv

Risk-Adjusted Performance

OK

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

Pair Trading with Saray Matbaacilik and Borlease Otomotiv

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

The idea behind Saray Matbaacilik Kagitcilik and Borlease Otomotiv AS 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.