Correlation Between Kafein Yazilim and Hitit Bilgisayar

Can any of the company-specific risk be diversified away by investing in both Kafein Yazilim and Hitit Bilgisayar 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 Kafein Yazilim and Hitit Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kafein Yazilim and Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on Kafein Yazilim and Hitit Bilgisayar 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 Kafein Yazilim with a short position of Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafein Yazilim and Hitit Bilgisayar.

Diversification Opportunities for Kafein Yazilim and Hitit Bilgisayar

-0.22

Correlation Coefficient

Kafein Yazilim  Hitit Bilgisayar

Very good diversification

The 3 months correlation between Kafein and Hitit is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kafein Yazilim and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz and Kafein Yazilim 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 Kafein Yazilim are associated (or correlated) with Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of Kafein Yazilim i.e., Kafein Yazilim and Hitit Bilgisayar go up and down completely randomly.

Pair Corralation between Kafein Yazilim and Hitit Bilgisayar

Assuming the 90 days trading horizon Kafein Yazilim is expected to generate 1.37 times less return on investment than Hitit Bilgisayar. But when comparing it to its historical volatility, Kafein Yazilim is 1.64 times less risky than Hitit Bilgisayar. It trades about 0.08 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,106  in Hitit Bilgisayar Hizmetleri on October 11, 2024 and sell it today you would earn a total of  3,042  from holding Hitit Bilgisayar Hizmetleri or generate 275.05% return on investment over 90 days.

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

Kafein Yazilim  vs.  Hitit Bilgisayar Hizmetleri

Kafein Yazilim

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kafein Yazilim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kafein Yazilim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Hitit Bilgisayar Hiz

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hitit Bilgisayar Hizmetleri are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Hitit Bilgisayar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kafein Yazilim and Hitit Bilgisayar

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

The idea behind Kafein Yazilim and Hitit Bilgisayar Hizmetleri 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.