Correlation Between Borlease Otomotiv and Yesil Yapi

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

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

Diversification Opportunities for Borlease Otomotiv and Yesil Yapi

-0.24

Correlation Coefficient

Borlease Otomotiv  Yesil Yapi

Very good diversification

The 3 months correlation between Borlease and Yesil is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi and Borlease Otomotiv 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 Borlease Otomotiv AS are associated (or correlated) with Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Borlease Otomotiv i.e., Borlease Otomotiv and Yesil Yapi go up and down completely randomly.

Pair Corralation between Borlease Otomotiv and Yesil Yapi

Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to under-perform the Yesil Yapi. In addition to that, Borlease Otomotiv is 1.14 times more volatile than Yesil Yapi Endustrisi. It trades about -0.08 of its total potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.13 per unit of volatility. If you would invest  140.00  in Yesil Yapi Endustrisi on April 22, 2025 and sell it today you would earn a total of  39.00  from holding Yesil Yapi Endustrisi or generate 27.86% return on investment over 90 days.

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

Borlease Otomotiv AS  vs.  Yesil Yapi Endustrisi

Borlease Otomotiv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Borlease Otomotiv AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Borlease Otomotiv and Yesil Yapi

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

The idea behind Borlease Otomotiv AS and Yesil Yapi Endustrisi 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.