Correlation Between Marka Yatirim and Gedik Yatirim

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

By analyzing existing cross correlation between Marka Yatirim Holding and Gedik Yatirim Menkul, you can compare the effects of market volatilities on Marka Yatirim and Gedik 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 Marka Yatirim with a short position of Gedik Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marka Yatirim and Gedik Yatirim.

Diversification Opportunities for Marka Yatirim and Gedik Yatirim

0.38

Correlation Coefficient

Marka Yatirim  Gedik Yatirim

Weak diversification

The 3 months correlation between Marka and Gedik is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Marka 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 Marka Yatirim Holding are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Marka Yatirim i.e., Marka Yatirim and Gedik Yatirim go up and down completely randomly.

Pair Corralation between Marka Yatirim and Gedik Yatirim

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 1.79 times more return on investment than Gedik Yatirim. However, Marka Yatirim is 1.79 times more volatile than Gedik Yatirim Menkul. It trades about 0.09 of its potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about -0.01 per unit of risk. If you would invest  5,300  in Marka Yatirim Holding on December 30, 2024 and sell it today you would earn a total of  1,180  from holding Marka Yatirim Holding or generate 22.26% return on investment over 90 days.

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

Marka Yatirim Holding  vs.  Gedik Yatirim Menkul

Marka Yatirim Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Marka Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Gedik Yatirim Menkul

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Marka Yatirim and Gedik Yatirim

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

The idea behind Marka Yatirim Holding and Gedik Yatirim Menkul 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.