Correlation Between Guler Yatirim and Hedef Girisim

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

By analyzing existing cross correlation between Guler Yatirim Holding and Hedef Girisim Sermayesi, you can compare the effects of market volatilities on Guler Yatirim and Hedef Girisim 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 Guler Yatirim with a short position of Hedef Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and Hedef Girisim.

Diversification Opportunities for Guler Yatirim and Hedef Girisim

0.73

Correlation Coefficient

Guler Yatirim  Hedef Girisim

Poor diversification

The 3 months correlation between Guler and Hedef is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and Hedef Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Girisim Sermayesi and Guler 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 Guler Yatirim Holding are associated (or correlated) with Hedef Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Girisim Sermayesi has no effect on the direction of Guler Yatirim i.e., Guler Yatirim and Hedef Girisim go up and down completely randomly.

Pair Corralation between Guler Yatirim and Hedef Girisim

Assuming the 90 days trading horizon Guler Yatirim Holding is expected to generate 1.34 times more return on investment than Hedef Girisim. However, Guler Yatirim is 1.34 times more volatile than Hedef Girisim Sermayesi. It trades about 0.05 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about -0.04 per unit of risk. If you would invest  1,194  in Guler Yatirim Holding on September 21, 2024 and sell it today you would earn a total of  144.00  from holding Guler Yatirim Holding or generate 12.06% return on investment over 90 days.

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

Guler Yatirim Holding  vs.  Hedef Girisim Sermayesi

Guler Yatirim Holding

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Guler Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Hedef Girisim Sermayesi

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Hedef Girisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Guler Yatirim and Hedef Girisim

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

The idea behind Guler Yatirim Holding and Hedef Girisim Sermayesi 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.