Correlation Between Hedef Girisim and Turkiye Vakiflar

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

Diversification Opportunities for Hedef Girisim and Turkiye Vakiflar

0.5

Correlation Coefficient

Hedef Girisim  Turkiye Vakiflar

Very weak diversification

The 3 months correlation between Hedef and Turkiye is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Turkiye Vakiflar Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Vakiflar 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 Vakiflar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Vakiflar Bankasi has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Turkiye Vakiflar go up and down completely randomly.

Pair Corralation between Hedef Girisim and Turkiye Vakiflar

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to under-perform the Turkiye Vakiflar. In addition to that, Hedef Girisim is 1.3 times more volatile than Turkiye Vakiflar Bankasi. It trades about -0.02 of its total potential returns per unit of risk. Turkiye Vakiflar Bankasi is currently generating about 0.1 per unit of volatility. If you would invest  2,346  in Turkiye Vakiflar Bankasi on October 6, 2024 and sell it today you would earn a total of  78.00  from holding Turkiye Vakiflar Bankasi or generate 3.32% return on investment over 90 days.

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

Hedef Girisim Sermayesi  vs.  Turkiye Vakiflar 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 Vakiflar Bankasi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Vakiflar Bankasi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Turkiye Vakiflar 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 Turkiye Vakiflar

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

The idea behind Hedef Girisim Sermayesi and Turkiye Vakiflar 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.