Correlation Between Is Yatirim and Verusa Holding

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

Diversification Opportunities for Is Yatirim and Verusa Holding

-0.45

Correlation Coefficient

Is Yatirim  Verusa Holding

Very good diversification

The 3 months correlation between ISMEN and Verusa is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Menkul and Verusa Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusa Holding AS 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 Verusa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusa Holding AS has no effect on the direction of Is Yatirim i.e., Is Yatirim and Verusa Holding go up and down completely randomly.

Pair Corralation between Is Yatirim and Verusa Holding

Assuming the 90 days trading horizon Is Yatirim Menkul is expected to generate 1.14 times more return on investment than Verusa Holding. However, Is Yatirim is 1.14 times more volatile than Verusa Holding AS. It trades about 0.15 of its potential returns per unit of risk. Verusa Holding AS is currently generating about -0.12 per unit of risk. If you would invest  3,482  in Is Yatirim Menkul on September 23, 2024 and sell it today you would earn a total of  902.00  from holding Is Yatirim Menkul or generate 25.9% return on investment over 90 days.

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

Is Yatirim Menkul  vs.  Verusa Holding AS

Is Yatirim Menkul

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 11 (%) 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.

Verusa Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusa Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Is Yatirim and Verusa Holding

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

The idea behind Is Yatirim Menkul and Verusa Holding AS 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.