Correlation Between Yapi Ve and Makina Takim

Can any of the company-specific risk be diversified away by investing in both Yapi Ve and Makina Takim 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 Makina Takim 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 Makina Takim Endustrisi, you can compare the effects of market volatilities on Yapi Ve and Makina Takim 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 Makina Takim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Makina Takim.

Diversification Opportunities for Yapi Ve and Makina Takim

0.77

Correlation Coefficient

Yapi Ve  Makina Takim

Poor diversification

The 3 months correlation between Yapi and Makina is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Makina Takim Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makina Takim Endustrisi 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 Makina Takim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makina Takim Endustrisi has no effect on the direction of Yapi Ve i.e., Yapi Ve and Makina Takim go up and down completely randomly.

Pair Corralation between Yapi Ve and Makina Takim

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Makina Takim. In addition to that, Yapi Ve is 1.11 times more volatile than Makina Takim Endustrisi. It trades about 0.0 of its total potential returns per unit of risk. Makina Takim Endustrisi is currently generating about 0.01 per unit of volatility. If you would invest  679.00  in Makina Takim Endustrisi on September 21, 2024 and sell it today you would lose (5.00) from holding Makina Takim Endustrisi or give up 0.74% of portfolio value over 90 days.

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

Yapi ve Kredi  vs.  Makina Takim Endustrisi

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

Makina Takim Endustrisi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Makina Takim Endustrisi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Makina Takim 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 Makina Takim

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

The idea behind Yapi ve Kredi and Makina Takim Endustrisi 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.