Correlation Between Hedef Girisim and Verusa Holding

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

Diversification Opportunities for Hedef Girisim and Verusa Holding

-0.05

Correlation Coefficient

Hedef Girisim  Verusa Holding

Good diversification

The 3 months correlation between Hedef and Verusa is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and Verusa Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusa 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 Verusa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusa Holding AS has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and Verusa Holding go up and down completely randomly.

Pair Corralation between Hedef Girisim and Verusa Holding

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 0.83 times more return on investment than Verusa Holding. However, Hedef Girisim Sermayesi is 1.2 times less risky than Verusa Holding. It trades about 0.2 of its potential returns per unit of risk. Verusa Holding AS is currently generating about -0.04 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hedef Girisim Sermayesi  vs.  Verusa 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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Verusa Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusa Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Hedef Girisim and Verusa Holding

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

The idea behind Hedef Girisim Sermayesi and Verusa 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.