Correlation Between Mackolik Internet and Peker Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Mackolik Internet and Peker Gayrimenkul 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 Mackolik Internet and Peker Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mackolik Internet Hizmetleri and Peker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Mackolik Internet and Peker Gayrimenkul 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 Mackolik Internet with a short position of Peker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Peker Gayrimenkul.

Diversification Opportunities for Mackolik Internet and Peker Gayrimenkul

0.08

Correlation Coefficient

Mackolik Internet  Peker Gayrimenkul

Significant diversification

The 3 months correlation between Mackolik and Peker is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim and Mackolik Internet 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 Mackolik Internet Hizmetleri are associated (or correlated) with Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Mackolik Internet and Peker Gayrimenkul

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to generate 0.72 times more return on investment than Peker Gayrimenkul. However, Mackolik Internet Hizmetleri is 1.39 times less risky than Peker Gayrimenkul. It trades about -0.02 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about -0.02 per unit of risk. If you would invest  10,450  in Mackolik Internet Hizmetleri on December 25, 2024 and sell it today you would lose (685.00) from holding Mackolik Internet Hizmetleri or give up 6.56% of portfolio value over 90 days.

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

Mackolik Internet Hizmetleri  vs.  Peker Gayrimenkul Yatirim

Mackolik Internet

Risk-Adjusted Performance

Very Weak

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

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Mackolik Internet and Peker Gayrimenkul

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

The idea behind Mackolik Internet Hizmetleri and Peker Gayrimenkul Yatirim 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.