Correlation Between Guler Yatirim and Hedef Holdings

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

Diversification Opportunities for Guler Yatirim and Hedef Holdings

0.03

Correlation Coefficient

Guler Yatirim  Hedef Holdings

Significant diversification

The 3 months correlation between Guler and Hedef is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS 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 Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of Guler Yatirim i.e., Guler Yatirim and Hedef Holdings go up and down completely randomly.

Pair Corralation between Guler Yatirim and Hedef Holdings

Assuming the 90 days trading horizon Guler Yatirim is expected to generate 1.26 times less return on investment than Hedef Holdings. In addition to that, Guler Yatirim is 1.27 times more volatile than Hedef Holdings AS. It trades about 0.11 of its total potential returns per unit of risk. Hedef Holdings AS is currently generating about 0.17 per unit of volatility. If you would invest  302.00  in Hedef Holdings AS on September 25, 2024 and sell it today you would earn a total of  20.00  from holding Hedef Holdings AS or generate 6.62% return on investment over 90 days.

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

Guler Yatirim Holding  vs.  Hedef Holdings AS

Guler Yatirim Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Guler Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hedef Holdings AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hedef Holdings AS 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.

Pair Trading with Guler Yatirim and Hedef Holdings

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

The idea behind Guler Yatirim Holding and Hedef Holdings AS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.