Correlation Between Marka Yatirim and Hedef Girisim

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

Diversification Opportunities for Marka Yatirim and Hedef Girisim

-0.26

Correlation Coefficient

Marka Yatirim  Hedef Girisim

Very good diversification

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

Pair Corralation between Marka Yatirim and Hedef Girisim

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 2.31 times more return on investment than Hedef Girisim. However, Marka Yatirim is 2.31 times more volatile than Hedef Girisim Sermayesi. It trades about 0.07 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.03 per unit of risk. If you would invest  4,574  in Marka Yatirim Holding on September 30, 2024 and sell it today you would earn a total of  796.00  from holding Marka Yatirim Holding or generate 17.4% return on investment over 90 days.

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

Marka Yatirim Holding  vs.  Hedef Girisim Sermayesi

Marka Yatirim Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 5 (%) 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.

Hedef Girisim Sermayesi

Risk-Adjusted Performance

2 of 100

Weak

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

Pair Trading with Marka Yatirim and Hedef Girisim

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

The idea behind Marka Yatirim Holding and Hedef Girisim Sermayesi 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.