Correlation Between Vakif Menkul and Sinpas Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Vakif Menkul and Sinpas Gayrimenkul 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 Sinpas Gayrimenkul 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 Sinpas Gayrimenkul Yatirim, you can compare the effects of market volatilities on Vakif Menkul and Sinpas Gayrimenkul 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 Sinpas Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vakif Menkul and Sinpas Gayrimenkul.

Diversification Opportunities for Vakif Menkul and Sinpas Gayrimenkul

0.65

Correlation Coefficient

Vakif Menkul  Sinpas Gayrimenkul

Poor diversification

The 3 months correlation between Vakif and Sinpas is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Menkul Kiymet and Sinpas Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinpas Gayrimenkul 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 Sinpas Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinpas Gayrimenkul has no effect on the direction of Vakif Menkul i.e., Vakif Menkul and Sinpas Gayrimenkul go up and down completely randomly.

Pair Corralation between Vakif Menkul and Sinpas Gayrimenkul

Assuming the 90 days trading horizon Vakif Menkul is expected to generate 2.42 times less return on investment than Sinpas Gayrimenkul. In addition to that, Vakif Menkul is 1.19 times more volatile than Sinpas Gayrimenkul Yatirim. It trades about 0.01 of its total potential returns per unit of risk. Sinpas Gayrimenkul Yatirim is currently generating about 0.02 per unit of volatility. If you would invest  287.00  in Sinpas Gayrimenkul Yatirim on September 26, 2024 and sell it today you would earn a total of  5.00  from holding Sinpas Gayrimenkul Yatirim or generate 1.74% return on investment over 90 days.

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

Vakif Menkul Kiymet  vs.  Sinpas Gayrimenkul Yatirim

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.

Sinpas Gayrimenkul

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with Vakif Menkul and Sinpas Gayrimenkul

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

The idea behind Vakif Menkul Kiymet and Sinpas Gayrimenkul Yatirim 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.