Correlation Between Gedik Yatirim and Trend Gayrimenkul

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

Diversification Opportunities for Gedik Yatirim and Trend Gayrimenkul

0.0

Correlation Coefficient

Gedik Yatirim  Trend Gayrimenkul

Pay attention - limited upside

The 3 months correlation between Gedik and Trend is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Trend Gayrimenkul go up and down completely randomly.

Pair Corralation between Gedik Yatirim and Trend Gayrimenkul

Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 0.75 times more return on investment than Trend Gayrimenkul. However, Gedik Yatirim Menkul is 1.34 times less risky than Trend Gayrimenkul. It trades about 0.07 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about -0.05 per unit of risk. If you would invest  762.00  in Gedik Yatirim Menkul on October 10, 2024 and sell it today you would earn a total of  38.00  from holding Gedik Yatirim Menkul or generate 4.99% return on investment over 90 days.

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

Gedik Yatirim Menkul  vs.  Trend Gayrimenkul Yatirim

Gedik Yatirim Menkul

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gedik Yatirim Menkul are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gedik Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Trend Gayrimenkul Yatirim are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Trend Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Gedik Yatirim and Trend Gayrimenkul

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

The idea behind Gedik Yatirim Menkul and Trend Gayrimenkul Yatirim 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.