Correlation Between Guler Yatirim and Turkiye Kalkinma

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

By analyzing existing cross correlation between Guler Yatirim Holding and Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on Guler Yatirim and Turkiye Kalkinma 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 Guler Yatirim with a short position of Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and Turkiye Kalkinma.

Diversification Opportunities for Guler Yatirim and Turkiye Kalkinma

-0.32

Correlation Coefficient

Guler Yatirim  Turkiye Kalkinma

Very good diversification

The 3 months correlation between Guler and Turkiye is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi and Guler 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 Guler Yatirim Holding are associated (or correlated) with Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Guler Yatirim i.e., Guler Yatirim and Turkiye Kalkinma go up and down completely randomly.

Pair Corralation between Guler Yatirim and Turkiye Kalkinma

Assuming the 90 days trading horizon Guler Yatirim Holding is expected to generate 1.41 times more return on investment than Turkiye Kalkinma. However, Guler Yatirim is 1.41 times more volatile than Turkiye Kalkinma Bankasi. It trades about 0.07 of its potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about -0.11 per unit of risk. If you would invest  1,131  in Guler Yatirim Holding on September 27, 2024 and sell it today you would earn a total of  104.00  from holding Guler Yatirim Holding or generate 9.2% return on investment over 90 days.

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

Guler Yatirim Holding  vs.  Turkiye Kalkinma Bankasi

Guler Yatirim Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Guler Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Turkiye Kalkinma Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Kalkinma Bankasi 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.

Pair Trading with Guler Yatirim and Turkiye Kalkinma

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

The idea behind Guler Yatirim Holding and Turkiye Kalkinma Bankasi 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.