Correlation Between Girisim Elektrik and Yesil Yapi

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

By analyzing existing cross correlation between Girisim Elektrik Taahhut and Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Girisim Elektrik and Yesil Yapi 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 Girisim Elektrik with a short position of Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Girisim Elektrik and Yesil Yapi.

Diversification Opportunities for Girisim Elektrik and Yesil Yapi

-0.4

Correlation Coefficient

Girisim Elektrik  Yesil Yapi

Very good diversification

The 3 months correlation between Girisim and Yesil is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Girisim Elektrik Taahhut and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi and Girisim Elektrik 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 Girisim Elektrik Taahhut are associated (or correlated) with Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Girisim Elektrik i.e., Girisim Elektrik and Yesil Yapi go up and down completely randomly.

Pair Corralation between Girisim Elektrik and Yesil Yapi

Assuming the 90 days trading horizon Girisim Elektrik Taahhut is expected to generate 0.88 times more return on investment than Yesil Yapi. However, Girisim Elektrik Taahhut is 1.14 times less risky than Yesil Yapi. It trades about 0.01 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about -0.23 per unit of risk. If you would invest  4,600  in Girisim Elektrik Taahhut on December 23, 2024 and sell it today you would lose (40.00) from holding Girisim Elektrik Taahhut or give up 0.87% of portfolio value over 90 days.

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

Girisim Elektrik Taahhut  vs.  Yesil Yapi Endustrisi

Girisim Elektrik Taahhut

Risk-Adjusted Performance

Very Weak

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

Yesil Yapi Endustrisi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Yapi Endustrisi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Girisim Elektrik and Yesil Yapi

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

The idea behind Girisim Elektrik Taahhut and Yesil Yapi Endustrisi 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.