Correlation Between Hedef Girisim and Euro Kapital

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

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

Diversification Opportunities for Hedef Girisim and Euro Kapital

0.73

Correlation Coefficient

Hedef Girisim  Euro Kapital

Poor diversification

The 3 months correlation between Hedef and Euro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim and Hedef 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 Hedef Girisim Sermayesi are associated (or correlated) with Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Euro Kapital go up and down completely randomly.

Pair Corralation between Hedef Girisim and Euro Kapital

Assuming the 90 days trading horizon Hedef Girisim is expected to generate 15.99 times less return on investment than Euro Kapital. But when comparing it to its historical volatility, Hedef Girisim Sermayesi is 1.82 times less risky than Euro Kapital. It trades about 0.02 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,266  in Euro Kapital Yatirim on October 1, 2024 and sell it today you would earn a total of  244.00  from holding Euro Kapital Yatirim or generate 19.27% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  Euro Kapital Yatirim

Hedef Girisim Sermayesi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Hedef Girisim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Euro Kapital Yatirim

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Kapital Yatirim are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Euro Kapital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hedef Girisim and Euro Kapital

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

The idea behind Hedef Girisim Sermayesi and Euro Kapital Yatirim 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.