Correlation Between Is Yatirim and Turkiye Halk

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

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

Diversification Opportunities for Is Yatirim and Turkiye Halk

0.53

Correlation Coefficient

Is Yatirim  Turkiye Halk

Very weak diversification

The 3 months correlation between ISMEN and Turkiye is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Menkul and Turkiye Halk Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Halk Bankasi and Is Yatirim 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 Yatirim Menkul are associated (or correlated) with Turkiye Halk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Halk Bankasi has no effect on the direction of Is Yatirim i.e., Is Yatirim and Turkiye Halk go up and down completely randomly.

Pair Corralation between Is Yatirim and Turkiye Halk

Assuming the 90 days trading horizon Is Yatirim Menkul is expected to generate 0.98 times more return on investment than Turkiye Halk. However, Is Yatirim Menkul is 1.02 times less risky than Turkiye Halk. It trades about 0.07 of its potential returns per unit of risk. Turkiye Halk Bankasi is currently generating about 0.06 per unit of risk. If you would invest  3,073  in Is Yatirim Menkul on September 25, 2024 and sell it today you would earn a total of  1,311  from holding Is Yatirim Menkul or generate 42.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.59%
Values	Daily Returns

Is Yatirim Menkul  vs.  Turkiye Halk Bankasi

Is Yatirim Menkul

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Halk Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Is Yatirim and Turkiye Halk

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

The idea behind Is Yatirim Menkul and Turkiye Halk Bankasi 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.