Correlation Between Hedef Girisim and Unlu Yatirim

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

Diversification Opportunities for Hedef Girisim and Unlu Yatirim

0.83

Correlation Coefficient

Hedef Girisim  Unlu Yatirim

Very poor diversification

The 3 months correlation between Hedef and Unlu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Unlu Yatirim go up and down completely randomly.

Pair Corralation between Hedef Girisim and Unlu Yatirim

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 1.52 times more return on investment than Unlu Yatirim. However, Hedef Girisim is 1.52 times more volatile than Unlu Yatirim Holding. It trades about 0.2 of its potential returns per unit of risk. Unlu Yatirim Holding is currently generating about 0.23 per unit of risk. If you would invest  142.00  in Hedef Girisim Sermayesi on September 21, 2024 and sell it today you would earn a total of  16.00  from holding Hedef Girisim Sermayesi or generate 11.27% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  Unlu Yatirim Holding

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.

Unlu Yatirim Holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unlu Yatirim Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Unlu Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hedef Girisim and Unlu Yatirim

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

The idea behind Hedef Girisim Sermayesi and Unlu Yatirim Holding 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 Transaction History module to view history of all your transactions and understand their impact on performance.