Correlation Between FinVolution and Ufuk Yatirim

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

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

Diversification Opportunities for FinVolution and Ufuk Yatirim

0.61

Correlation Coefficient

FinVolution  Ufuk Yatirim

Poor diversification

The 3 months correlation between FinVolution and Ufuk is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and Ufuk Yatirim Yonetim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ufuk Yatirim Yonetim and FinVolution 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 FinVolution Group are associated (or correlated) with Ufuk Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ufuk Yatirim Yonetim has no effect on the direction of FinVolution i.e., FinVolution and Ufuk Yatirim go up and down completely randomly.

Pair Corralation between FinVolution and Ufuk Yatirim

Given the investment horizon of 90 days FinVolution is expected to generate 6.7 times less return on investment than Ufuk Yatirim. But when comparing it to its historical volatility, FinVolution Group is 2.39 times less risky than Ufuk Yatirim. It trades about 0.04 of its potential returns per unit of risk. Ufuk Yatirim Yonetim is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  6,350  in Ufuk Yatirim Yonetim on October 5, 2024 and sell it today you would earn a total of  53,450  from holding Ufuk Yatirim Yonetim or generate 841.73% return on investment over 90 days.

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

FinVolution Group  vs.  Ufuk Yatirim Yonetim

FinVolution Group

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FinVolution Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, FinVolution is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Ufuk Yatirim Yonetim

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ufuk Yatirim Yonetim are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ufuk Yatirim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FinVolution and Ufuk Yatirim

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

The idea behind FinVolution Group and Ufuk Yatirim Yonetim 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.