Correlation Between Verusaturk Girisim and Marka Yatirim

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

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

Diversification Opportunities for Verusaturk Girisim and Marka Yatirim

-0.45

Correlation Coefficient

Verusaturk Girisim  Marka Yatirim

Very good diversification

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

Pair Corralation between Verusaturk Girisim and Marka Yatirim

Assuming the 90 days trading horizon Verusaturk Girisim Sermayesi is expected to under-perform the Marka Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Verusaturk Girisim Sermayesi is 3.4 times less risky than Marka Yatirim. The stock trades about -0.13 of its potential returns per unit of risk. The Marka Yatirim Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  5,670  in Marka Yatirim Holding on September 13, 2024 and sell it today you would lose (70.00) from holding Marka Yatirim Holding or give up 1.23% of portfolio value over 90 days.

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

Verusaturk Girisim Sermayesi  vs.  Marka Yatirim Holding

Verusaturk Girisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusaturk Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Marka Yatirim Holding

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Marka Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Verusaturk Girisim and Marka Yatirim

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

The idea behind Verusaturk Girisim Sermayesi and Marka Yatirim Holding 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..