Correlation Between Is Yatirim and Jantsa Jant

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

By analyzing existing cross correlation between Is Yatirim Ortakligi and Jantsa Jant Sanayi, you can compare the effects of market volatilities on Is Yatirim and Jantsa Jant 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 Yatirim with a short position of Jantsa Jant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Jantsa Jant.

Diversification Opportunities for Is Yatirim and Jantsa Jant

0.79

Correlation Coefficient

Is Yatirim  Jantsa Jant

Poor diversification

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

Pair Corralation between Is Yatirim and Jantsa Jant

Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to generate 0.9 times more return on investment than Jantsa Jant. However, Is Yatirim Ortakligi is 1.11 times less risky than Jantsa Jant. It trades about -0.11 of its potential returns per unit of risk. Jantsa Jant Sanayi is currently generating about -0.12 per unit of risk. If you would invest  860.00  in Is Yatirim Ortakligi on December 24, 2024 and sell it today you would lose (117.00) from holding Is Yatirim Ortakligi or give up 13.6% of portfolio value over 90 days.

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

Is Yatirim Ortakligi  vs.  Jantsa Jant Sanayi

Is Yatirim Ortakligi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Is Yatirim Ortakligi 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.

Jantsa Jant Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jantsa Jant Sanayi 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 Is Yatirim and Jantsa Jant

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

The idea behind Is Yatirim Ortakligi and Jantsa Jant Sanayi 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.