Correlation Between Euro Yatirim and Oyak Yatirim

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

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

Diversification Opportunities for Euro Yatirim and Oyak Yatirim

-0.38

Correlation Coefficient

Euro Yatirim  Oyak Yatirim

Very good diversification

The 3 months correlation between Euro and Oyak is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Euro Yatirim Holding and Oyak Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oyak Yatirim Menkul and Euro 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 Euro Yatirim Holding are associated (or correlated) with Oyak Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oyak Yatirim Menkul has no effect on the direction of Euro Yatirim i.e., Euro Yatirim and Oyak Yatirim go up and down completely randomly.

Pair Corralation between Euro Yatirim and Oyak Yatirim

Assuming the 90 days trading horizon Euro Yatirim Holding is expected to under-perform the Oyak Yatirim. In addition to that, Euro Yatirim is 2.79 times more volatile than Oyak Yatirim Menkul. It trades about -0.08 of its total potential returns per unit of risk. Oyak Yatirim Menkul is currently generating about -0.1 per unit of volatility. If you would invest  3,656  in Oyak Yatirim Menkul on September 5, 2024 and sell it today you would lose (158.00) from holding Oyak Yatirim Menkul or give up 4.32% of portfolio value over 90 days.

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

Euro Yatirim Holding  vs.  Oyak Yatirim Menkul

Euro Yatirim Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Yatirim Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Euro Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Oyak Yatirim Menkul

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oyak Yatirim Menkul 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Euro Yatirim and Oyak Yatirim

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

The idea behind Euro Yatirim Holding and Oyak 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.