Correlation Between Hektas Ticaret and Turkiye Sise

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

By analyzing existing cross correlation between Hektas Ticaret TAS and Turkiye Sise ve, you can compare the effects of market volatilities on Hektas Ticaret and Turkiye Sise 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 Hektas Ticaret with a short position of Turkiye Sise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Turkiye Sise.

Diversification Opportunities for Hektas Ticaret and Turkiye Sise

0.66

Correlation Coefficient

Hektas Ticaret  Turkiye Sise

Poor diversification

The 3 months correlation between Hektas and Turkiye is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and Turkiye Sise ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sise ve and Hektas Ticaret 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 Hektas Ticaret TAS are associated (or correlated) with Turkiye Sise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sise ve has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and Turkiye Sise go up and down completely randomly.

Pair Corralation between Hektas Ticaret and Turkiye Sise

Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to under-perform the Turkiye Sise. In addition to that, Hektas Ticaret is 1.71 times more volatile than Turkiye Sise ve. It trades about -0.01 of its total potential returns per unit of risk. Turkiye Sise ve is currently generating about -0.01 per unit of volatility. If you would invest  4,230  in Turkiye Sise ve on September 4, 2024 and sell it today you would lose (108.00) from holding Turkiye Sise ve or give up 2.55% of portfolio value over 90 days.

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

Hektas Ticaret TAS  vs.  Turkiye Sise ve

Hektas Ticaret TAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hektas Ticaret TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Hektas Ticaret is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Turkiye Sise ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Sise ve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hektas Ticaret and Turkiye Sise

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

The idea behind Hektas Ticaret TAS and Turkiye Sise ve 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.