Correlation Between Hedef Girisim and Turkiye Kalkinma

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

Diversification Opportunities for Hedef Girisim and Turkiye Kalkinma

-0.13

Correlation Coefficient

Hedef Girisim  Turkiye Kalkinma

Good diversification

The 3 months correlation between Hedef and Turkiye is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Turkiye Kalkinma go up and down completely randomly.

Pair Corralation between Hedef Girisim and Turkiye Kalkinma

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to under-perform the Turkiye Kalkinma. But the stock apears to be less risky and, when comparing its historical volatility, Hedef Girisim Sermayesi is 1.36 times less risky than Turkiye Kalkinma. The stock trades about -0.01 of its potential returns per unit of risk. The Turkiye Kalkinma Bankasi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,393  in Turkiye Kalkinma Bankasi on October 6, 2024 and sell it today you would earn a total of  6.00  from holding Turkiye Kalkinma Bankasi or generate 0.43% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  Turkiye Kalkinma Bankasi

Hedef Girisim Sermayesi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hedef Girisim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Kalkinma Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Kalkinma Bankasi 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 Hedef Girisim and Turkiye Kalkinma

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

The idea behind Hedef Girisim Sermayesi and Turkiye Kalkinma Bankasi 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.