Correlation Between Marka Yatirim and Is Yatirim

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

Diversification Opportunities for Marka Yatirim and Is Yatirim

-0.12

Correlation Coefficient

Marka Yatirim  Is Yatirim

Good diversification

The 3 months correlation between Marka and ISMEN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding and Is Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is 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 Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Menkul has no effect on the direction of Marka Yatirim i.e., Marka Yatirim and Is Yatirim go up and down completely randomly.

Pair Corralation between Marka Yatirim and Is Yatirim

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to under-perform the Is Yatirim. In addition to that, Marka Yatirim is 1.41 times more volatile than Is Yatirim Menkul. It trades about -0.08 of its total potential returns per unit of risk. Is Yatirim Menkul is currently generating about 0.17 per unit of volatility. If you would invest  4,004  in Is Yatirim Menkul on September 22, 2024 and sell it today you would earn a total of  380.00  from holding Is Yatirim Menkul or generate 9.49% 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.  Is Yatirim Menkul

Marka Yatirim Holding

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marka Yatirim Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Marka Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Is Yatirim Menkul

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marka Yatirim and Is Yatirim

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

The idea behind Marka Yatirim Holding and Is 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.