Correlation Between Dogus Gayrimenkul and Penta Teknoloji

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

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

Diversification Opportunities for Dogus Gayrimenkul and Penta Teknoloji

0.88

Correlation Coefficient

Dogus Gayrimenkul  Penta Teknoloji

Very poor diversification

The 3 months correlation between Dogus and Penta is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Gayrimenkul Yatirim and Penta Teknoloji Urunleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Teknoloji Urunleri and Dogus 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 Dogus Gayrimenkul Yatirim are associated (or correlated) with Penta Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Teknoloji Urunleri has no effect on the direction of Dogus Gayrimenkul i.e., Dogus Gayrimenkul and Penta Teknoloji go up and down completely randomly.

Pair Corralation between Dogus Gayrimenkul and Penta Teknoloji

Assuming the 90 days trading horizon Dogus Gayrimenkul Yatirim is expected to under-perform the Penta Teknoloji. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Gayrimenkul Yatirim is 1.07 times less risky than Penta Teknoloji. The stock trades about -0.12 of its potential returns per unit of risk. The Penta Teknoloji Urunleri is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  1,565  in Penta Teknoloji Urunleri on December 30, 2024 and sell it today you would lose (203.00) from holding Penta Teknoloji Urunleri or give up 12.97% of portfolio value over 90 days.

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

Dogus Gayrimenkul Yatirim  vs.  Penta Teknoloji Urunleri

Dogus Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogus Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Penta Teknoloji Urunleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Penta Teknoloji Urunleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Dogus Gayrimenkul and Penta Teknoloji

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

The idea behind Dogus Gayrimenkul Yatirim and Penta Teknoloji Urunleri 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..