Correlation Between Yapi Ve and Hedef Girisim

Can any of the company-specific risk be diversified away by investing in both Yapi Ve 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 Yapi Ve and Hedef Girisim 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 Hedef Girisim Sermayesi, you can compare the effects of market volatilities on Yapi Ve 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 Yapi Ve with a short position of Hedef Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Hedef Girisim.

Diversification Opportunities for Yapi Ve and Hedef Girisim

0.87

Correlation Coefficient

Yapi Ve  Hedef Girisim

Very poor diversification

The 3 months correlation between Yapi and Hedef is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi 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 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 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 Yapi Ve i.e., Yapi Ve and Hedef Girisim go up and down completely randomly.

Pair Corralation between Yapi Ve and Hedef Girisim

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 1.41 times more return on investment than Hedef Girisim. However, Yapi Ve is 1.41 times more volatile than Hedef Girisim Sermayesi. It trades about 0.05 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.03 per unit of risk. If you would invest  2,844  in Yapi ve Kredi on September 14, 2024 and sell it today you would earn a total of  216.00  from holding Yapi ve Kredi or generate 7.59% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Hedef Girisim Sermayesi

Yapi ve Kredi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hedef Girisim Sermayesi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Hedef Girisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Yapi Ve and Hedef Girisim

The main advantage of trading using opposite Yapi Ve and Hedef Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve 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 Yapi ve Kredi 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.