Correlation Between Penguen Gida and Vakif Menkul

Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Vakif Menkul 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 Penguen Gida and Vakif Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Penguen Gida Sanayi and Vakif Menkul Kiymet, you can compare the effects of market volatilities on Penguen Gida and Vakif Menkul 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 Penguen Gida with a short position of Vakif Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Vakif Menkul.

Diversification Opportunities for Penguen Gida and Vakif Menkul

0.78

Correlation Coefficient

Penguen Gida  Vakif Menkul

Poor diversification

The 3 months correlation between Penguen and Vakif is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Vakif Menkul Kiymet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Menkul Kiymet and Penguen Gida 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 Penguen Gida Sanayi are associated (or correlated) with Vakif Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Menkul Kiymet has no effect on the direction of Penguen Gida i.e., Penguen Gida and Vakif Menkul go up and down completely randomly.

Pair Corralation between Penguen Gida and Vakif Menkul

Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to generate 0.9 times more return on investment than Vakif Menkul. However, Penguen Gida Sanayi is 1.11 times less risky than Vakif Menkul. It trades about -0.06 of its potential returns per unit of risk. Vakif Menkul Kiymet is currently generating about -0.15 per unit of risk. If you would invest  690.00  in Penguen Gida Sanayi on October 1, 2024 and sell it today you would lose (14.00) from holding Penguen Gida Sanayi or give up 2.03% of portfolio value over 90 days.

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

Penguen Gida Sanayi  vs.  Vakif Menkul Kiymet

Penguen Gida Sanayi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Vakif Menkul Kiymet

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Menkul Kiymet are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Vakif Menkul may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Penguen Gida and Vakif Menkul

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

The idea behind Penguen Gida Sanayi and Vakif Menkul Kiymet 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..