Correlation Between Mackolik Internet and Unlu Yatirim

Can any of the company-specific risk be diversified away by investing in both Mackolik Internet and Unlu Yatirim 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 Unlu Yatirim 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 Unlu Yatirim Holding, you can compare the effects of market volatilities on Mackolik Internet and Unlu Yatirim 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 Unlu Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackolik Internet and Unlu Yatirim.

Diversification Opportunities for Mackolik Internet and Unlu Yatirim

0.88

Correlation Coefficient

Mackolik Internet  Unlu Yatirim

Very poor diversification

The 3 months correlation between Mackolik and Unlu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mackolik Internet Hizmetleri and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of Mackolik Internet i.e., Mackolik Internet and Unlu Yatirim go up and down completely randomly.

Pair Corralation between Mackolik Internet and Unlu Yatirim

Assuming the 90 days trading horizon Mackolik Internet Hizmetleri is expected to generate 1.27 times more return on investment than Unlu Yatirim. However, Mackolik Internet is 1.27 times more volatile than Unlu Yatirim Holding. It trades about 0.28 of its potential returns per unit of risk. Unlu Yatirim Holding is currently generating about 0.2 per unit of risk. If you would invest  8,120  in Mackolik Internet Hizmetleri on October 7, 2024 and sell it today you would earn a total of  2,260  from holding Mackolik Internet Hizmetleri or generate 27.83% return on investment over 90 days.

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

Mackolik Internet Hizmetleri  vs.  Unlu Yatirim Holding

Mackolik Internet

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Unlu Yatirim Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unlu Yatirim Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Unlu Yatirim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mackolik Internet and Unlu Yatirim

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

The idea behind Mackolik Internet Hizmetleri and Unlu Yatirim Holding 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.