Correlation Between E Data and Borlease Otomotiv

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

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

Diversification Opportunities for E Data and Borlease Otomotiv

0.26

Correlation Coefficient

E Data  Borlease Otomotiv

Modest diversification

The 3 months correlation between EDATA and Borlease is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and E Data 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 E Data Teknoloji Pazarlama 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 E Data i.e., E Data and Borlease Otomotiv go up and down completely randomly.

Pair Corralation between E Data and Borlease Otomotiv

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to generate 0.22 times more return on investment than Borlease Otomotiv. However, E Data Teknoloji Pazarlama is 4.51 times less risky than Borlease Otomotiv. It trades about 0.05 of its potential returns per unit of risk. Borlease Otomotiv AS is currently generating about -0.14 per unit of risk. If you would invest  418.00  in E Data Teknoloji Pazarlama on April 20, 2025 and sell it today you would earn a total of  21.00  from holding E Data Teknoloji Pazarlama or generate 5.02% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  Borlease Otomotiv AS

E Data Teknoloji

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in E Data Teknoloji Pazarlama are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, E Data may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 inconsistent 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.

Pair Trading with E Data and Borlease Otomotiv

The main advantage of trading using opposite E Data and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data 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 E Data Teknoloji Pazarlama 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.