Correlation Between Iskenderun Demir and Borusan Mannesmann
Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir and Borusan Mannesmann 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 Iskenderun Demir and Borusan Mannesmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iskenderun Demir ve and Borusan Mannesmann Boru, you can compare the effects of market volatilities on Iskenderun Demir and Borusan Mannesmann 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 Iskenderun Demir with a short position of Borusan Mannesmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Borusan Mannesmann.
Diversification Opportunities for Iskenderun Demir and Borusan Mannesmann
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iskenderun and Borusan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Borusan Mannesmann Boru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borusan Mannesmann Boru and Iskenderun Demir 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 Iskenderun Demir ve are associated (or correlated) with Borusan Mannesmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borusan Mannesmann Boru has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Borusan Mannesmann go up and down completely randomly.
Pair Corralation between Iskenderun Demir and Borusan Mannesmann
Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.79 times more return on investment than Borusan Mannesmann. However, Iskenderun Demir ve is 1.27 times less risky than Borusan Mannesmann. It trades about 0.12 of its potential returns per unit of risk. Borusan Mannesmann Boru is currently generating about -0.05 per unit of risk. If you would invest 3,594 in Iskenderun Demir ve on September 24, 2024 and sell it today you would earn a total of 564.00 from holding Iskenderun Demir ve or generate 15.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Iskenderun Demir ve vs. Borusan Mannesmann Boru
Performance |
Timeline |
Iskenderun Demir |
Borusan Mannesmann Boru |
Iskenderun Demir and Borusan Mannesmann Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iskenderun Demir and Borusan Mannesmann
The main advantage of trading using opposite Iskenderun Demir and Borusan Mannesmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iskenderun Demir position performs unexpectedly, Borusan Mannesmann 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 Mannesmann will offset losses from the drop in Borusan Mannesmann's long position.Iskenderun Demir vs. Ege Endustri ve | Iskenderun Demir vs. Bosch Fren Sistemleri | Iskenderun Demir vs. Dogus Otomotiv Servis | Iskenderun Demir vs. Nuh Cimento Sanayi |
Borusan Mannesmann vs. Cimsa Cimento Sanayi | Borusan Mannesmann vs. Aksa Akrilik Kimya | Borusan Mannesmann vs. EIS Eczacibasi Ilac | Borusan Mannesmann vs. Kordsa Global Endustriyel |
Check out your portfolio center.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.
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