Correlation Between Trend Gayrimenkul and Mavi Giyim

Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul and Mavi Giyim 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 Trend Gayrimenkul and Mavi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trend Gayrimenkul Yatirim and Mavi Giyim Sanayi, you can compare the effects of market volatilities on Trend Gayrimenkul and Mavi Giyim 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 Trend Gayrimenkul with a short position of Mavi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Mavi Giyim.

Diversification Opportunities for Trend Gayrimenkul and Mavi Giyim

-0.75

Correlation Coefficient

Trend Gayrimenkul  Mavi Giyim

Pay attention - limited upside

The 3 months correlation between Trend and Mavi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and Mavi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavi Giyim Sanayi and Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim are associated (or correlated) with Mavi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavi Giyim Sanayi has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and Mavi Giyim go up and down completely randomly.

Pair Corralation between Trend Gayrimenkul and Mavi Giyim

Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to under-perform the Mavi Giyim. In addition to that, Trend Gayrimenkul is 1.74 times more volatile than Mavi Giyim Sanayi. It trades about -0.13 of its total potential returns per unit of risk. Mavi Giyim Sanayi is currently generating about 0.29 per unit of volatility. If you would invest  7,455  in Mavi Giyim Sanayi on September 22, 2024 and sell it today you would earn a total of  1,075  from holding Mavi Giyim Sanayi or generate 14.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Trend Gayrimenkul Yatirim  vs.  Mavi Giyim Sanayi

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trend Gayrimenkul Yatirim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Trend Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mavi Giyim Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mavi Giyim Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mavi Giyim is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Trend Gayrimenkul and Mavi Giyim

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

The idea behind Trend Gayrimenkul Yatirim and Mavi Giyim Sanayi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.