Correlation Between Adese Gayrimenkul and Emlak Konut

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

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

Diversification Opportunities for Adese Gayrimenkul and Emlak Konut

-0.43

Correlation Coefficient

Adese Gayrimenkul  Emlak Konut

Very good diversification

The 3 months correlation between Adese and Emlak is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Adese Gayrimenkul Yatirim and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul and Adese Gayrimenkul 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 Adese Gayrimenkul Yatirim are associated (or correlated) with Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Adese Gayrimenkul i.e., Adese Gayrimenkul and Emlak Konut go up and down completely randomly.

Pair Corralation between Adese Gayrimenkul and Emlak Konut

Assuming the 90 days trading horizon Adese Gayrimenkul Yatirim is expected to under-perform the Emlak Konut. But the stock apears to be less risky and, when comparing its historical volatility, Adese Gayrimenkul Yatirim is 1.04 times less risky than Emlak Konut. The stock trades about -0.03 of its potential returns per unit of risk. The Emlak Konut Gayrimenkul is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,331  in Emlak Konut Gayrimenkul on December 11, 2024 and sell it today you would earn a total of  198.00  from holding Emlak Konut Gayrimenkul or generate 14.88% return on investment over 90 days.

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

Adese Gayrimenkul Yatirim  vs.  Emlak Konut Gayrimenkul

Adese Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

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

Emlak Konut Gayrimenkul

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Emlak Konut Gayrimenkul are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Emlak Konut demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adese Gayrimenkul and Emlak Konut

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

The idea behind Adese Gayrimenkul Yatirim and Emlak Konut Gayrimenkul 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.