Correlation Between Gozde Girisim and Is Yatirim

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

By analyzing existing cross correlation between Gozde Girisim Sermayesi and Is Yatirim Ortakligi, you can compare the effects of market volatilities on Gozde Girisim and Is Yatirim 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 Gozde Girisim with a short position of Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gozde Girisim and Is Yatirim.

Diversification Opportunities for Gozde Girisim and Is Yatirim

0.17

Correlation Coefficient

Gozde Girisim  Is Yatirim

Average diversification

The 3 months correlation between Gozde and ISYAT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gozde Girisim Sermayesi and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi and Gozde Girisim 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 Gozde Girisim Sermayesi are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of Gozde Girisim i.e., Gozde Girisim and Is Yatirim go up and down completely randomly.

Pair Corralation between Gozde Girisim and Is Yatirim

Assuming the 90 days trading horizon Gozde Girisim Sermayesi is expected to under-perform the Is Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Gozde Girisim Sermayesi is 1.26 times less risky than Is Yatirim. The stock trades about -0.09 of its potential returns per unit of risk. The Is Yatirim Ortakligi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  849.00  in Is Yatirim Ortakligi on September 22, 2024 and sell it today you would earn a total of  14.00  from holding Is Yatirim Ortakligi or generate 1.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Gozde Girisim Sermayesi  vs.  Is Yatirim Ortakligi

Gozde Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gozde Girisim Sermayesi 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Is Yatirim Ortakligi

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Ortakligi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Is Yatirim is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Gozde Girisim and Is Yatirim

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

The idea behind Gozde Girisim Sermayesi and Is Yatirim Ortakligi 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.