Correlation Between Hedef Holdings and Marka Yatirim

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

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

Diversification Opportunities for Hedef Holdings and Marka Yatirim

-0.51

Correlation Coefficient

Hedef Holdings  Marka Yatirim

Excellent diversification

The 3 months correlation between Hedef and Marka is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Holdings AS and Marka Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marka Yatirim Holding and Hedef Holdings 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 Holdings AS are associated (or correlated) with Marka Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marka Yatirim Holding has no effect on the direction of Hedef Holdings i.e., Hedef Holdings and Marka Yatirim go up and down completely randomly.

Pair Corralation between Hedef Holdings and Marka Yatirim

Assuming the 90 days trading horizon Hedef Holdings AS is expected to under-perform the Marka Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Hedef Holdings AS is 2.06 times less risky than Marka Yatirim. The stock trades about -0.12 of its potential returns per unit of risk. The Marka Yatirim Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  5,380  in Marka Yatirim Holding on September 14, 2024 and sell it today you would earn a total of  290.00  from holding Marka Yatirim Holding or generate 5.39% return on investment over 90 days.

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

Hedef Holdings AS  vs.  Marka Yatirim Holding

Hedef Holdings AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Marka Yatirim Holding

Risk-Adjusted Performance

3 of 100

Weak

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

Pair Trading with Hedef Holdings and Marka Yatirim

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

The idea behind Hedef Holdings AS and Marka 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..