Correlation Between Is Finansal and Global Menkul

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

By analyzing existing cross correlation between Is Finansal Kiralama and Global Menkul Degerler, you can compare the effects of market volatilities on Is Finansal and Global Menkul 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 Is Finansal with a short position of Global Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Finansal and Global Menkul.

Diversification Opportunities for Is Finansal and Global Menkul

0.79

Correlation Coefficient

Is Finansal  Global Menkul

Poor diversification

The 3 months correlation between ISFIN and Global is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Is Finansal Kiralama and Global Menkul Degerler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Menkul Degerler and Is Finansal 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 Is Finansal Kiralama are associated (or correlated) with Global Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Menkul Degerler has no effect on the direction of Is Finansal i.e., Is Finansal and Global Menkul go up and down completely randomly.

Pair Corralation between Is Finansal and Global Menkul

Assuming the 90 days trading horizon Is Finansal Kiralama is expected to generate 0.34 times more return on investment than Global Menkul. However, Is Finansal Kiralama is 2.93 times less risky than Global Menkul. It trades about 0.27 of its potential returns per unit of risk. Global Menkul Degerler is currently generating about 0.07 per unit of risk. If you would invest  1,130  in Is Finansal Kiralama on September 23, 2024 and sell it today you would earn a total of  125.00  from holding Is Finansal Kiralama or generate 11.06% return on investment over 90 days.

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

Is Finansal Kiralama  vs.  Global Menkul Degerler

Is Finansal Kiralama

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Is Finansal Kiralama are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Finansal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Global Menkul Degerler

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Menkul Degerler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Global Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Is Finansal and Global Menkul

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

The idea behind Is Finansal Kiralama and Global Menkul Degerler 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.