Correlation Between Indeks Bilgisayar and Yesil Yatirim

Can any of the company-specific risk be diversified away by investing in both Indeks Bilgisayar and Yesil 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 Indeks Bilgisayar and Yesil Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Indeks Bilgisayar Sistemleri and Yesil Yatirim Holding, you can compare the effects of market volatilities on Indeks Bilgisayar and Yesil 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 Indeks Bilgisayar with a short position of Yesil Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indeks Bilgisayar and Yesil Yatirim.

Diversification Opportunities for Indeks Bilgisayar and Yesil Yatirim

-0.31

Correlation Coefficient

Indeks Bilgisayar  Yesil Yatirim

Very good diversification

The 3 months correlation between Indeks and Yesil is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Indeks Bilgisayar Sistemleri and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yatirim Holding and Indeks Bilgisayar 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 Indeks Bilgisayar Sistemleri are associated (or correlated) with Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of Indeks Bilgisayar i.e., Indeks Bilgisayar and Yesil Yatirim go up and down completely randomly.

Pair Corralation between Indeks Bilgisayar and Yesil Yatirim

Assuming the 90 days trading horizon Indeks Bilgisayar Sistemleri is expected to generate 0.78 times more return on investment than Yesil Yatirim. However, Indeks Bilgisayar Sistemleri is 1.28 times less risky than Yesil Yatirim. It trades about -0.03 of its potential returns per unit of risk. Yesil Yatirim Holding is currently generating about -0.15 per unit of risk. If you would invest  725.00  in Indeks Bilgisayar Sistemleri on December 23, 2024 and sell it today you would lose (54.00) from holding Indeks Bilgisayar Sistemleri or give up 7.45% of portfolio value over 90 days.

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

Indeks Bilgisayar Sistemleri  vs.  Yesil Yatirim Holding

Indeks Bilgisayar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Indeks Bilgisayar Sistemleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Indeks Bilgisayar is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Yesil Yatirim Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Yatirim Holding 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Indeks Bilgisayar and Yesil Yatirim

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

The idea behind Indeks Bilgisayar Sistemleri and Yesil 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.