Correlation Between Turkiye Is and Gedik Yatirim

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

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

Diversification Opportunities for Turkiye Is and Gedik Yatirim

-0.34

Correlation Coefficient

Turkiye Is  Gedik Yatirim

Very good diversification

The 3 months correlation between Turkiye and Gedik is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Turkiye Is i.e., Turkiye Is and Gedik Yatirim go up and down completely randomly.

Pair Corralation between Turkiye Is and Gedik Yatirim

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Gedik Yatirim. In addition to that, Turkiye Is is 1.23 times more volatile than Gedik Yatirim Menkul. It trades about -0.06 of its total potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about 0.09 per unit of volatility. If you would invest  684.00  in Gedik Yatirim Menkul on September 5, 2024 and sell it today you would earn a total of  91.00  from holding Gedik Yatirim Menkul or generate 13.3% return on investment over 90 days.

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

Turkiye Is Bankasi  vs.  Gedik Yatirim Menkul

Turkiye Is Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Is Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Gedik Yatirim Menkul

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gedik Yatirim Menkul are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Gedik Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Is and Gedik Yatirim

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

The idea behind Turkiye Is Bankasi and Gedik Yatirim Menkul 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.