Correlation Between Escort Teknoloji and Gedik Yatirim

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

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

Diversification Opportunities for Escort Teknoloji and Gedik Yatirim

0.74

Correlation Coefficient

Escort Teknoloji  Gedik Yatirim

Poor diversification

The 3 months correlation between Escort and Gedik is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Escort Teknoloji Yatirim and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Escort Teknoloji 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 Escort Teknoloji Yatirim are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Escort Teknoloji i.e., Escort Teknoloji and Gedik Yatirim go up and down completely randomly.

Pair Corralation between Escort Teknoloji and Gedik Yatirim

Assuming the 90 days trading horizon Escort Teknoloji Yatirim is expected to under-perform the Gedik Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Escort Teknoloji Yatirim is 1.56 times less risky than Gedik Yatirim. The stock trades about -0.19 of its potential returns per unit of risk. The Gedik Yatirim Menkul is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  804.00  in Gedik Yatirim Menkul on October 11, 2024 and sell it today you would lose (8.00) from holding Gedik Yatirim Menkul or give up 1.0% of portfolio value over 90 days.

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

Escort Teknoloji Yatirim  vs.  Gedik Yatirim Menkul

Escort Teknoloji Yatirim

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Gedik Yatirim Menkul

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gedik Yatirim Menkul are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gedik Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Escort Teknoloji and Gedik Yatirim

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

The idea behind Escort Teknoloji Yatirim and Gedik Yatirim Menkul 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.