Correlation Between Logo Yazilim and Penta Teknoloji

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

By analyzing existing cross correlation between Logo Yazilim Sanayi and Penta Teknoloji Urunleri, you can compare the effects of market volatilities on Logo Yazilim and Penta Teknoloji 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 Logo Yazilim with a short position of Penta Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logo Yazilim and Penta Teknoloji.

Diversification Opportunities for Logo Yazilim and Penta Teknoloji

0.51

Correlation Coefficient

Logo Yazilim  Penta Teknoloji

Very weak diversification

The 3 months correlation between Logo and Penta is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Logo Yazilim Sanayi and Penta Teknoloji Urunleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Teknoloji Urunleri and Logo 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 Logo Yazilim Sanayi are associated (or correlated) with Penta Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Teknoloji Urunleri has no effect on the direction of Logo Yazilim i.e., Logo Yazilim and Penta Teknoloji go up and down completely randomly.

Pair Corralation between Logo Yazilim and Penta Teknoloji

Assuming the 90 days trading horizon Logo Yazilim Sanayi is expected to generate 1.09 times more return on investment than Penta Teknoloji. However, Logo Yazilim is 1.09 times more volatile than Penta Teknoloji Urunleri. It trades about 0.08 of its potential returns per unit of risk. Penta Teknoloji Urunleri is currently generating about -0.05 per unit of risk. If you would invest  7,363  in Logo Yazilim Sanayi on September 14, 2024 and sell it today you would earn a total of  4,937  from holding Logo Yazilim Sanayi or generate 67.05% return on investment over 90 days.

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

Logo Yazilim Sanayi  vs.  Penta Teknoloji Urunleri

Logo Yazilim Sanayi

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Logo Yazilim Sanayi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Logo Yazilim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Penta Teknoloji Urunleri

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penta Teknoloji Urunleri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Penta Teknoloji is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Logo Yazilim and Penta Teknoloji

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

The idea behind Logo Yazilim Sanayi and Penta Teknoloji Urunleri 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.