Correlation Between Euro Menkul and Marka Yatirim

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

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

Diversification Opportunities for Euro Menkul and Marka Yatirim

0.27

Correlation Coefficient

Euro Menkul  Marka Yatirim

Modest diversification

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

Pair Corralation between Euro Menkul and Marka Yatirim

Assuming the 90 days trading horizon Euro Menkul Kiymet is expected to under-perform the Marka Yatirim. In addition to that, Euro Menkul is 1.12 times more volatile than Marka Yatirim Holding. It trades about -0.07 of its total potential returns per unit of risk. Marka Yatirim Holding is currently generating about 0.02 per unit of volatility. If you would invest  5,370  in Marka Yatirim Holding on December 27, 2024 and sell it today you would earn a total of  45.00  from holding Marka Yatirim Holding or generate 0.84% return on investment over 90 days.

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

Euro Menkul Kiymet  vs.  Marka Yatirim Holding

Euro Menkul Kiymet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Euro Menkul Kiymet 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.

Marka Yatirim Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Marka Yatirim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Euro Menkul and Marka Yatirim

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

The idea behind Euro Menkul Kiymet and Marka Yatirim 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.

Check out your portfolio center.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.