Correlation Between Marka Yatirim and Verusaturk Girisim

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

Diversification Opportunities for Marka Yatirim and Verusaturk Girisim

-0.48

Correlation Coefficient

Marka Yatirim  Verusaturk Girisim

Very good diversification

The 3 months correlation between Marka and Verusaturk is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding and Verusaturk Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusaturk Girisim 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 Verusaturk Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusaturk Girisim has no effect on the direction of Marka Yatirim i.e., Marka Yatirim and Verusaturk Girisim go up and down completely randomly.

Pair Corralation between Marka Yatirim and Verusaturk Girisim

Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 2.81 times more return on investment than Verusaturk Girisim. However, Marka Yatirim is 2.81 times more volatile than Verusaturk Girisim Sermayesi. It trades about -0.04 of its potential returns per unit of risk. Verusaturk Girisim Sermayesi is currently generating about -0.12 per unit of risk. If you would invest  7,930  in Marka Yatirim Holding on September 21, 2024 and sell it today you would lose (2,145) from holding Marka Yatirim Holding or give up 27.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.07%
Values	Daily Returns

Marka Yatirim Holding  vs.  Verusaturk Girisim Sermayesi

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.

Verusaturk Girisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusaturk Girisim Sermayesi 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Marka Yatirim and Verusaturk Girisim

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

The idea behind Marka Yatirim Holding and Verusaturk 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.