Correlation Between Is Yatirim and Marti Gayrimenkul

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

Diversification Opportunities for Is Yatirim and Marti Gayrimenkul

0.74

Correlation Coefficient

Is Yatirim  Marti Gayrimenkul

Poor diversification

The 3 months correlation between ISYAT and Marti is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi and Marti Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Gayrimenkul Yatirim 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 Marti Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Gayrimenkul Yatirim has no effect on the direction of Is Yatirim i.e., Is Yatirim and Marti Gayrimenkul go up and down completely randomly.

Pair Corralation between Is Yatirim and Marti Gayrimenkul

Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to generate 0.58 times more return on investment than Marti Gayrimenkul. However, Is Yatirim Ortakligi is 1.73 times less risky than Marti Gayrimenkul. It trades about -0.1 of its potential returns per unit of risk. Marti Gayrimenkul Yatirim is currently generating about -0.14 per unit of risk. If you would invest  853.00  in Is Yatirim Ortakligi on December 21, 2024 and sell it today you would lose (110.00) from holding Is Yatirim Ortakligi or give up 12.9% 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.  Marti Gayrimenkul Yatirim

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 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.

Marti Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marti Gayrimenkul Yatirim 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 Marti Gayrimenkul

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

The idea behind Is Yatirim Ortakligi and Marti Gayrimenkul Yatirim 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .