Correlation Between Hedef Girisim and Is Yatirim

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

Diversification Opportunities for Hedef Girisim and Is Yatirim

0.63

Correlation Coefficient

Hedef Girisim  Is Yatirim

Poor diversification

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

Pair Corralation between Hedef Girisim and Is Yatirim

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to under-perform the Is Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Hedef Girisim Sermayesi is 1.13 times less risky than Is Yatirim. The stock trades about -0.04 of its potential returns per unit of risk. The Is Yatirim Ortakligi is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  995.00  in Is Yatirim Ortakligi on September 21, 2024 and sell it today you would lose (125.00) from holding Is Yatirim Ortakligi or give up 12.56% 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.  Is Yatirim Ortakligi

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.

Is Yatirim Ortakligi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Ortakligi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Is Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Hedef Girisim and Is Yatirim

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

The idea behind Hedef Girisim Sermayesi and Is Yatirim Ortakligi 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.