Correlation Between Turkiye Is and Yapi Ve

Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Yapi Ve 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 Turkiye Is and Yapi Ve into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Is Bankasi and Yapi ve Kredi, you can compare the effects of market volatilities on Turkiye Is and Yapi Ve 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 Turkiye Is with a short position of Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Yapi Ve.

Diversification Opportunities for Turkiye Is and Yapi Ve

0.25

Correlation Coefficient

Turkiye Is  Yapi Ve

Modest diversification

The 3 months correlation between Turkiye and Yapi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Turkiye Is i.e., Turkiye Is and Yapi Ve go up and down completely randomly.

Pair Corralation between Turkiye Is and Yapi Ve

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Yapi Ve. In addition to that, Turkiye Is is 1.1 times more volatile than Yapi ve Kredi. It trades about -0.04 of its total potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.05 per unit of volatility. If you would invest  2,914  in Yapi ve Kredi on September 13, 2024 and sell it today you would earn a total of  172.00  from holding Yapi ve Kredi or generate 5.9% return on investment over 90 days.

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

Turkiye Is Bankasi  vs.  Yapi ve Kredi

Turkiye Is Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Is 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.

Yapi ve Kredi

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Turkiye Is and Yapi Ve

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

The idea behind Turkiye Is Bankasi and Yapi ve Kredi 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.

Check out your portfolio center.

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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.