Correlation Between Yatas Yatak and Dogus Gayrimenkul

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

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

Diversification Opportunities for Yatas Yatak and Dogus Gayrimenkul

0.74

Correlation Coefficient

Yatas Yatak  Dogus Gayrimenkul

Poor diversification

The 3 months correlation between Yatas and Dogus is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Yatas Yatak ve and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim and Yatas Yatak 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 Yatas Yatak ve are associated (or correlated) with Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of Yatas Yatak i.e., Yatas Yatak and Dogus Gayrimenkul go up and down completely randomly.

Pair Corralation between Yatas Yatak and Dogus Gayrimenkul

Assuming the 90 days trading horizon Yatas Yatak ve is expected to under-perform the Dogus Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Yatas Yatak ve is 1.32 times less risky than Dogus Gayrimenkul. The stock trades about -0.01 of its potential returns per unit of risk. The Dogus Gayrimenkul Yatirim is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,552  in Dogus Gayrimenkul Yatirim on September 21, 2024 and sell it today you would earn a total of  716.00  from holding Dogus Gayrimenkul Yatirim or generate 20.16% return on investment over 90 days.

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

Yatas Yatak ve  vs.  Dogus Gayrimenkul Yatirim

Yatas Yatak ve

Risk-Adjusted Performance

0 of 100

Very Weak

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

Dogus Gayrimenkul Yatirim

Risk-Adjusted Performance

8 of 100

OK

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

Pair Trading with Yatas Yatak and Dogus Gayrimenkul

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

The idea behind Yatas Yatak ve and Dogus 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.