Correlation Between Vakif Menkul and Hedef Girisim

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

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

Diversification Opportunities for Vakif Menkul and Hedef Girisim

0.75

Correlation Coefficient

Vakif Menkul  Hedef Girisim

Poor diversification

The 3 months correlation between Vakif and Hedef is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Menkul Kiymet 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 Vakif Menkul 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 Vakif Menkul Kiymet 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 Vakif Menkul i.e., Vakif Menkul and Hedef Girisim go up and down completely randomly.

Pair Corralation between Vakif Menkul and Hedef Girisim

Assuming the 90 days trading horizon Vakif Menkul Kiymet is expected to generate 1.35 times more return on investment than Hedef Girisim. However, Vakif Menkul is 1.35 times more volatile than Hedef Girisim Sermayesi. It trades about 0.0 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.0 per unit of risk. If you would invest  2,006  in Vakif Menkul Kiymet on September 22, 2024 and sell it today you would lose (44.00) from holding Vakif Menkul Kiymet or give up 2.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Vakif Menkul Kiymet  vs.  Hedef Girisim Sermayesi

Vakif Menkul Kiymet

Risk-Adjusted Performance

0 of 100

Very Weak

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

Hedef Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very 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 newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vakif Menkul and Hedef Girisim

The main advantage of trading using opposite Vakif Menkul and Hedef Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vakif Menkul 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 Vakif Menkul Kiymet 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.