Correlation Between Kafein Yazilim and Yayla Enerji

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

By analyzing existing cross correlation between Kafein Yazilim and Yayla Enerji Uretim, you can compare the effects of market volatilities on Kafein Yazilim and Yayla Enerji 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 Yayla Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafein Yazilim and Yayla Enerji.

Diversification Opportunities for Kafein Yazilim and Yayla Enerji

-0.04

Correlation Coefficient

Kafein Yazilim  Yayla Enerji

Good diversification

The 3 months correlation between Kafein and Yayla is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kafein Yazilim and Yayla Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yayla Enerji Uretim 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 Yayla Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yayla Enerji Uretim has no effect on the direction of Kafein Yazilim i.e., Kafein Yazilim and Yayla Enerji go up and down completely randomly.

Pair Corralation between Kafein Yazilim and Yayla Enerji

Assuming the 90 days trading horizon Kafein Yazilim is expected to generate 1.42 times more return on investment than Yayla Enerji. However, Kafein Yazilim is 1.42 times more volatile than Yayla Enerji Uretim. It trades about 0.11 of its potential returns per unit of risk. Yayla Enerji Uretim is currently generating about 0.03 per unit of risk. If you would invest  8,490  in Kafein Yazilim on December 22, 2024 and sell it today you would earn a total of  1,910  from holding Kafein Yazilim or generate 22.5% 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.  Yayla Enerji Uretim

Kafein Yazilim

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kafein Yazilim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Kafein Yazilim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yayla Enerji Uretim

Risk-Adjusted Performance

Weak

Over the last 90 days Yayla Enerji Uretim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Yayla Enerji is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kafein Yazilim and Yayla Enerji

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

The idea behind Kafein Yazilim and Yayla Enerji Uretim 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.