Correlation Between Yapi Ve and Frigo Pak

Can any of the company-specific risk be diversified away by investing in both Yapi Ve and Frigo Pak 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 Yapi Ve and Frigo Pak into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yapi ve Kredi and Frigo Pak Gida Maddeleri, you can compare the effects of market volatilities on Yapi Ve and Frigo Pak 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 Yapi Ve with a short position of Frigo Pak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Frigo Pak.

Diversification Opportunities for Yapi Ve and Frigo Pak

-0.39

Correlation Coefficient

Yapi Ve  Frigo Pak

Very good diversification

The 3 months correlation between Yapi and Frigo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Frigo Pak Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigo Pak Gida and Yapi Ve 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 Yapi ve Kredi are associated (or correlated) with Frigo Pak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigo Pak Gida has no effect on the direction of Yapi Ve i.e., Yapi Ve and Frigo Pak go up and down completely randomly.

Pair Corralation between Yapi Ve and Frigo Pak

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Frigo Pak. In addition to that, Yapi Ve is 1.1 times more volatile than Frigo Pak Gida Maddeleri. It trades about -0.02 of its total potential returns per unit of risk. Frigo Pak Gida Maddeleri is currently generating about 0.05 per unit of volatility. If you would invest  768.00  in Frigo Pak Gida Maddeleri on September 5, 2024 and sell it today you would earn a total of  46.00  from holding Frigo Pak Gida Maddeleri or generate 5.99% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Frigo Pak Gida Maddeleri

Yapi ve Kredi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Frigo Pak Gida

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Frigo Pak Gida Maddeleri are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Frigo Pak may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Yapi Ve and Frigo Pak

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

The idea behind Yapi ve Kredi and Frigo Pak Gida Maddeleri 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.