Correlation Between Koc Holding and Yapi Ve

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

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

Diversification Opportunities for Koc Holding and Yapi Ve

0.45

Correlation Coefficient

Koc Holding  Yapi Ve

Very weak diversification

The 3 months correlation between Koc and Yapi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS 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 Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Yapi Ve go up and down completely randomly.

Pair Corralation between Koc Holding and Yapi Ve

Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Yapi Ve. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.43 times less risky than Yapi Ve. The stock trades about -0.24 of its potential returns per unit of risk. The Yapi ve Kredi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,900  in Yapi ve Kredi on December 2, 2024 and sell it today you would earn a total of  40.00  from holding Yapi ve Kredi or generate 1.38% return on investment over 90 days.

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

Koc Holding AS  vs.  Yapi ve Kredi

Koc Holding AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koc Holding AS 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.

Yapi ve Kredi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Yapi Ve is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Koc Holding and Yapi Ve

The main advantage of trading using opposite Koc Holding and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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 Koc Holding AS 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.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.