Correlation Between Haci Omer and Hedef Girisim

Can any of the company-specific risk be diversified away by investing in both Haci Omer and Hedef Girisim 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 Haci Omer and Hedef Girisim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haci Omer Sabanci and Hedef Girisim Sermayesi, you can compare the effects of market volatilities on Haci Omer and Hedef Girisim 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 Haci Omer with a short position of Hedef Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haci Omer and Hedef Girisim.

Diversification Opportunities for Haci Omer and Hedef Girisim

0.76

Correlation Coefficient

Haci Omer  Hedef Girisim

Poor diversification

The 3 months correlation between Haci and Hedef is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Hedef Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Girisim Sermayesi and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Hedef Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Girisim Sermayesi has no effect on the direction of Haci Omer i.e., Haci Omer and Hedef Girisim go up and down completely randomly.

Pair Corralation between Haci Omer and Hedef Girisim

Assuming the 90 days trading horizon Haci Omer Sabanci is expected to generate 1.33 times more return on investment than Hedef Girisim. However, Haci Omer is 1.33 times more volatile than Hedef Girisim Sermayesi. It trades about 0.05 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.03 per unit of risk. If you would invest  9,100  in Haci Omer Sabanci on September 14, 2024 and sell it today you would earn a total of  635.00  from holding Haci Omer Sabanci or generate 6.98% return on investment over 90 days.

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

Haci Omer Sabanci  vs.  Hedef Girisim Sermayesi

Haci Omer Sabanci

Risk-Adjusted Performance

4 of 100

Insignificant

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

Hedef Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Haci Omer and Hedef Girisim

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

The idea behind Haci Omer Sabanci and Hedef Girisim Sermayesi 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.