Correlation Between Gedik Yatirim and Mackolik Internet

Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Mackolik Internet 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 Mackolik Internet 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 Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on Gedik Yatirim and Mackolik Internet 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 Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Mackolik Internet.

Diversification Opportunities for Gedik Yatirim and Mackolik Internet

-0.19

Correlation Coefficient

Gedik Yatirim  Mackolik Internet

Good diversification

The 3 months correlation between Gedik and Mackolik is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet 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 Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Mackolik Internet go up and down completely randomly.

Pair Corralation between Gedik Yatirim and Mackolik Internet

Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 0.86 times more return on investment than Mackolik Internet. However, Gedik Yatirim Menkul is 1.17 times less risky than Mackolik Internet. It trades about -0.03 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about -0.03 per unit of risk. If you would invest  763.00  in Gedik Yatirim Menkul on December 24, 2024 and sell it today you would lose (52.00) from holding Gedik Yatirim Menkul or give up 6.82% of portfolio value over 90 days.

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

Gedik Yatirim Menkul  vs.  Mackolik Internet Hizmetleri

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 fairly strong forward indicators, Gedik Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Mackolik Internet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mackolik Internet Hizmetleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Mackolik Internet is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Gedik Yatirim and Mackolik Internet

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

The idea behind Gedik Yatirim Menkul and Mackolik Internet Hizmetleri 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..