Correlation Between Is Finansal and Vakif Finansal
Can any of the company-specific risk be diversified away by investing in both Is Finansal and Vakif Finansal 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 Is Finansal and Vakif Finansal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Finansal Kiralama and Vakif Finansal Kiralama, you can compare the effects of market volatilities on Is Finansal and Vakif Finansal 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 Is Finansal with a short position of Vakif Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Finansal and Vakif Finansal.
Diversification Opportunities for Is Finansal and Vakif Finansal
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISFIN and Vakif is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Is Finansal Kiralama and Vakif Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Finansal Kiralama and Is Finansal 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 Is Finansal Kiralama are associated (or correlated) with Vakif Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Finansal Kiralama has no effect on the direction of Is Finansal i.e., Is Finansal and Vakif Finansal go up and down completely randomly.
Pair Corralation between Is Finansal and Vakif Finansal
Assuming the 90 days trading horizon Is Finansal Kiralama is expected to generate 0.66 times more return on investment than Vakif Finansal. However, Is Finansal Kiralama is 1.5 times less risky than Vakif Finansal. It trades about 0.08 of its potential returns per unit of risk. Vakif Finansal Kiralama is currently generating about 0.05 per unit of risk. If you would invest 1,138 in Is Finansal Kiralama on September 23, 2024 and sell it today you would earn a total of 117.00 from holding Is Finansal Kiralama or generate 10.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Is Finansal Kiralama vs. Vakif Finansal Kiralama
Performance |
Timeline |
Is Finansal Kiralama |
Vakif Finansal Kiralama |
Is Finansal and Vakif Finansal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Is Finansal and Vakif Finansal
The main advantage of trading using opposite Is Finansal and Vakif Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Finansal position performs unexpectedly, Vakif Finansal 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 Vakif Finansal will offset losses from the drop in Vakif Finansal's long position.Is Finansal vs. Is Gayrimenkul Yatirim | Is Finansal vs. Tekfen Holding AS | Is Finansal vs. Turkiye Sinai Kalkinma | Is Finansal vs. Kardemir Karabuk Demir |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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