Correlation Between Eczacibasi Yatirim and Mazhar Zorlu

Can any of the company-specific risk be diversified away by investing in both Eczacibasi Yatirim and Mazhar Zorlu 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 Eczacibasi Yatirim and Mazhar Zorlu into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Eczacibasi Yatirim and Mazhar Zorlu

0.68

Correlation Coefficient

Eczacibasi Yatirim  Mazhar Zorlu

Poor diversification

The 3 months correlation between Eczacibasi and Mazhar is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eczacibasi Yatirim Holding and Mazhar Zorlu Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mazhar Zorlu Holding and Eczacibasi Yatirim 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 Eczacibasi Yatirim Holding are associated (or correlated) with Mazhar Zorlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mazhar Zorlu Holding has no effect on the direction of Eczacibasi Yatirim i.e., Eczacibasi Yatirim and Mazhar Zorlu go up and down completely randomly.

Pair Corralation between Eczacibasi Yatirim and Mazhar Zorlu

Assuming the 90 days trading horizon Eczacibasi Yatirim Holding is expected to generate 1.26 times more return on investment than Mazhar Zorlu. However, Eczacibasi Yatirim is 1.26 times more volatile than Mazhar Zorlu Holding. It trades about 0.02 of its potential returns per unit of risk. Mazhar Zorlu Holding is currently generating about -0.02 per unit of risk. If you would invest  17,542  in Eczacibasi Yatirim Holding on September 23, 2024 and sell it today you would earn a total of  2,478  from holding Eczacibasi Yatirim Holding or generate 14.13% return on investment over 90 days.

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

Eczacibasi Yatirim Holding  vs.  Mazhar Zorlu Holding

Eczacibasi Yatirim

Risk-Adjusted Performance

0 of 100

Very Weak

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

Mazhar Zorlu Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Eczacibasi Yatirim and Mazhar Zorlu

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

The idea behind Eczacibasi Yatirim Holding and Mazhar Zorlu Holding 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.