Correlation Between Eregli Demir and Yesil Gayrimenkul

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

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

Diversification Opportunities for Eregli Demir and Yesil Gayrimenkul

0.27

Correlation Coefficient

Eregli Demir  Yesil Gayrimenkul

Modest diversification

The 3 months correlation between Eregli and Yesil is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Yesil Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Gayrimenkul Yatirim and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Yesil Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Gayrimenkul Yatirim has no effect on the direction of Eregli Demir i.e., Eregli Demir and Yesil Gayrimenkul go up and down completely randomly.

Pair Corralation between Eregli Demir and Yesil Gayrimenkul

Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.52 times more return on investment than Yesil Gayrimenkul. However, Eregli Demir ve is 1.91 times less risky than Yesil Gayrimenkul. It trades about -0.07 of its potential returns per unit of risk. Yesil Gayrimenkul Yatirim is currently generating about -0.19 per unit of risk. If you would invest  2,486  in Eregli Demir ve on December 24, 2024 and sell it today you would lose (316.00) from holding Eregli Demir ve or give up 12.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Eregli Demir ve  vs.  Yesil Gayrimenkul Yatirim

Eregli Demir ve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eregli Demir ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

Yesil Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Eregli Demir and Yesil Gayrimenkul

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

The idea behind Eregli Demir ve and Yesil Gayrimenkul Yatirim 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.