Correlation Between Hedef Girisim and Deva Holding

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

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

Diversification Opportunities for Hedef Girisim and Deva Holding

0.63

Correlation Coefficient

Hedef Girisim  Deva Holding

Poor diversification

The 3 months correlation between Hedef and Deva is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS and Hedef Girisim 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 Hedef Girisim Sermayesi are associated (or correlated) with Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Deva Holding go up and down completely randomly.

Pair Corralation between Hedef Girisim and Deva Holding

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to under-perform the Deva Holding. But the stock apears to be less risky and, when comparing its historical volatility, Hedef Girisim Sermayesi is 1.02 times less risky than Deva Holding. The stock trades about -0.02 of its potential returns per unit of risk. The Deva Holding AS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  8,205  in Deva Holding AS on September 27, 2024 and sell it today you would lose (680.00) from holding Deva Holding AS or give up 8.29% of portfolio value over 90 days.

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

Hedef Girisim Sermayesi  vs.  Deva Holding AS

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 newest stock price confusion, may contribute to short-horizon losses for the traders.

Deva Holding AS

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Deva Holding AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Deva Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hedef Girisim and Deva Holding

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

The idea behind Hedef Girisim Sermayesi and Deva Holding 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.