Correlation Between Kuyas Yatirim and Haci Omer

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

By analyzing existing cross correlation between Kuyas Yatirim AS and Haci Omer Sabanci, you can compare the effects of market volatilities on Kuyas Yatirim and Haci Omer 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 Kuyas Yatirim with a short position of Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Haci Omer.

Diversification Opportunities for Kuyas Yatirim and Haci Omer

-0.26

Correlation Coefficient

Kuyas Yatirim  Haci Omer

Very good diversification

The 3 months correlation between Kuyas and Haci is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci and Kuyas 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 Kuyas Yatirim AS are associated (or correlated) with Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Kuyas Yatirim i.e., Kuyas Yatirim and Haci Omer go up and down completely randomly.

Pair Corralation between Kuyas Yatirim and Haci Omer

Assuming the 90 days trading horizon Kuyas Yatirim AS is expected to generate 0.82 times more return on investment than Haci Omer. However, Kuyas Yatirim AS is 1.22 times less risky than Haci Omer. It trades about 0.08 of its potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.05 per unit of risk. If you would invest  1,621  in Kuyas Yatirim AS on September 13, 2024 and sell it today you would earn a total of  177.00  from holding Kuyas Yatirim AS or generate 10.92% return on investment over 90 days.

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

Kuyas Yatirim AS  vs.  Haci Omer Sabanci

Kuyas Yatirim AS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kuyas Yatirim AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kuyas Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Haci Omer Sabanci

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Haci Omer may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Kuyas Yatirim and Haci Omer

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

The idea behind Kuyas Yatirim AS and Haci Omer Sabanci 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 Transaction History module to view history of all your transactions and understand their impact on performance.