Correlation Between Gedik Yatirim and Logo Yazilim

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

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

Diversification Opportunities for Gedik Yatirim and Logo Yazilim

0.47

Correlation Coefficient

Gedik Yatirim  Logo Yazilim

Very weak diversification

The 3 months correlation between Gedik and Logo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Logo Yazilim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logo Yazilim Sanayi and Gedik 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 Gedik Yatirim Menkul are associated (or correlated) with Logo Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logo Yazilim Sanayi has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Logo Yazilim go up and down completely randomly.

Pair Corralation between Gedik Yatirim and Logo Yazilim

Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to under-perform the Logo Yazilim. But the stock apears to be less risky and, when comparing its historical volatility, Gedik Yatirim Menkul is 1.29 times less risky than Logo Yazilim. The stock trades about -0.05 of its potential returns per unit of risk. The Logo Yazilim Sanayi is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  11,800  in Logo Yazilim Sanayi on December 2, 2024 and sell it today you would lose (410.00) from holding Logo Yazilim Sanayi or give up 3.47% of portfolio value over 90 days.

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

Gedik Yatirim Menkul  vs.  Logo Yazilim Sanayi

Gedik Yatirim Menkul

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gedik Yatirim Menkul has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

Logo Yazilim Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Logo Yazilim Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Logo Yazilim is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Gedik Yatirim and Logo Yazilim

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

The idea behind Gedik Yatirim Menkul and Logo Yazilim Sanayi 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.