Correlation Between Gozde Girisim and Yesil Yatirim

Can any of the company-specific risk be diversified away by investing in both Gozde Girisim and Yesil 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 Yesil 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 Yesil Yatirim Holding, you can compare the effects of market volatilities on Gozde Girisim and Yesil 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 Yesil Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gozde Girisim and Yesil Yatirim.

Diversification Opportunities for Gozde Girisim and Yesil Yatirim

0.19

Correlation Coefficient

Gozde Girisim  Yesil Yatirim

Average diversification

The 3 months correlation between Gozde and Yesil is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gozde Girisim Sermayesi and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yatirim Holding 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 Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of Gozde Girisim i.e., Gozde Girisim and Yesil Yatirim go up and down completely randomly.

Pair Corralation between Gozde Girisim and Yesil Yatirim

Assuming the 90 days trading horizon Gozde Girisim Sermayesi is expected to under-perform the Yesil Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Gozde Girisim Sermayesi is 1.82 times less risky than Yesil Yatirim. The stock trades about -0.09 of its potential returns per unit of risk. The Yesil Yatirim Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  145.00  in Yesil Yatirim Holding on September 22, 2024 and sell it today you would earn a total of  58.00  from holding Yesil Yatirim Holding or generate 40.0% 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.  Yesil Yatirim Holding

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.

Yesil Yatirim Holding

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Yesil Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gozde Girisim and Yesil Yatirim

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

The idea behind Gozde Girisim Sermayesi and Yesil Yatirim Holding 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.