Correlation Between Turkiye Is and Is Gayrimenkul

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

Diversification Opportunities for Turkiye Is and Is Gayrimenkul

0.67

Correlation Coefficient

Turkiye Is  Is Gayrimenkul

Poor diversification

The 3 months correlation between Turkiye and ISGYO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Is Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Gayrimenkul Yatirim 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 Is Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Gayrimenkul Yatirim has no effect on the direction of Turkiye Is i.e., Turkiye Is and Is Gayrimenkul go up and down completely randomly.

Pair Corralation between Turkiye Is and Is Gayrimenkul

Assuming the 90 days trading horizon Turkiye Is is expected to generate 2.19 times less return on investment than Is Gayrimenkul. But when comparing it to its historical volatility, Turkiye Is Bankasi is 1.04 times less risky than Is Gayrimenkul. It trades about 0.05 of its potential returns per unit of risk. Is Gayrimenkul Yatirim is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,704  in Is Gayrimenkul Yatirim on September 15, 2024 and sell it today you would earn a total of  292.00  from holding Is Gayrimenkul Yatirim or generate 17.14% return on investment over 90 days.

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

Turkiye Is Bankasi  vs.  Is Gayrimenkul Yatirim

Turkiye Is Bankasi

Risk-Adjusted Performance

4 of 100

Modest

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

Is Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Is Gayrimenkul Yatirim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Is and Is Gayrimenkul

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

The idea behind Turkiye Is Bankasi and Is Gayrimenkul 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.