Correlation Between Is Finansal and Saray Matbaacilik

Can any of the company-specific risk be diversified away by investing in both Is Finansal and Saray Matbaacilik 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 Saray Matbaacilik 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 Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on Is Finansal and Saray Matbaacilik 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 Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Finansal and Saray Matbaacilik.

Diversification Opportunities for Is Finansal and Saray Matbaacilik

-0.21

Correlation Coefficient

Is Finansal  Saray Matbaacilik

Very good diversification

The 3 months correlation between ISFIN and Saray is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Is Finansal Kiralama and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Is Finansal i.e., Is Finansal and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Is Finansal and Saray Matbaacilik

Assuming the 90 days trading horizon Is Finansal Kiralama is expected to generate 0.7 times more return on investment than Saray Matbaacilik. However, Is Finansal Kiralama is 1.43 times less risky than Saray Matbaacilik. It trades about 0.05 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about -0.14 per unit of risk. If you would invest  1,138  in Is Finansal Kiralama on October 9, 2024 and sell it today you would earn a total of  225.00  from holding Is Finansal Kiralama or generate 19.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.45%
Values	Daily Returns

Is Finansal Kiralama  vs.  Saray Matbaacilik Kagitcilik

Is Finansal Kiralama

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Finansal Kiralama are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Finansal demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Saray Matbaacilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saray Matbaacilik Kagitcilik 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.

Pair Trading with Is Finansal and Saray Matbaacilik

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

The idea behind Is Finansal Kiralama and Saray Matbaacilik Kagitcilik 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 Transaction History module to view history of all your transactions and understand their impact on performance.