Correlation Between Marka Yatirim and Pamel Yenilenebilir

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

Diversification Opportunities for Marka Yatirim and Pamel Yenilenebilir

-0.04

Correlation Coefficient

Marka Yatirim  Pamel Yenilenebilir

Good diversification

The 3 months correlation between Marka and Pamel is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding and Pamel Yenilenebilir Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pamel Yenilenebilir 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 Pamel Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pamel Yenilenebilir has no effect on the direction of Marka Yatirim i.e., Marka Yatirim and Pamel Yenilenebilir go up and down completely randomly.

Pair Corralation between Marka Yatirim and Pamel Yenilenebilir

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 1.53 times more return on investment than Pamel Yenilenebilir. However, Marka Yatirim is 1.53 times more volatile than Pamel Yenilenebilir Elektrik. It trades about 0.09 of its potential returns per unit of risk. Pamel Yenilenebilir Elektrik is currently generating about -0.08 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Marka Yatirim Holding  vs.  Pamel Yenilenebilir Elektrik

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.

Pamel Yenilenebilir

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pamel Yenilenebilir Elektrik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Marka Yatirim and Pamel Yenilenebilir

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

The idea behind Marka Yatirim Holding and Pamel Yenilenebilir Elektrik 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.