Correlation Between Dogus Otomotiv and Yibitas Yozgat

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

By analyzing existing cross correlation between Dogus Otomotiv Servis and Yibitas Yozgat Isci, you can compare the effects of market volatilities on Dogus Otomotiv and Yibitas Yozgat 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 Otomotiv with a short position of Yibitas Yozgat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Yibitas Yozgat.

Diversification Opportunities for Dogus Otomotiv and Yibitas Yozgat

-0.66

Correlation Coefficient

Dogus Otomotiv  Yibitas Yozgat

Excellent diversification

The 3 months correlation between Dogus and Yibitas is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and Yibitas Yozgat Isci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yibitas Yozgat Isci and Dogus Otomotiv 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 Otomotiv Servis are associated (or correlated) with Yibitas Yozgat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yibitas Yozgat Isci has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and Yibitas Yozgat go up and down completely randomly.

Pair Corralation between Dogus Otomotiv and Yibitas Yozgat

Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the Yibitas Yozgat. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 2.29 times less risky than Yibitas Yozgat. The stock trades about -0.17 of its potential returns per unit of risk. The Yibitas Yozgat Isci is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  11,307,500  in Yibitas Yozgat Isci on October 12, 2024 and sell it today you would earn a total of  1,042,800  from holding Yibitas Yozgat Isci or generate 9.22% return on investment over 90 days.

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

Dogus Otomotiv Servis  vs.  Yibitas Yozgat Isci

Dogus Otomotiv Servis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dogus Otomotiv Servis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dogus Otomotiv is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Yibitas Yozgat Isci

Risk-Adjusted Performance

3 of 100

Weak

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

Pair Trading with Dogus Otomotiv and Yibitas Yozgat

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

The idea behind Dogus Otomotiv Servis and Yibitas Yozgat Isci 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..