Correlation Between Mavi Giyim and Vestel Elektronik

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

By analyzing existing cross correlation between Mavi Giyim Sanayi and Vestel Elektronik Sanayi, you can compare the effects of market volatilities on Mavi Giyim and Vestel Elektronik 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 Mavi Giyim with a short position of Vestel Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mavi Giyim and Vestel Elektronik.

Diversification Opportunities for Mavi Giyim and Vestel Elektronik

0.0

Correlation Coefficient

Mavi Giyim  Vestel Elektronik

Pay attention - limited upside

The 3 months correlation between Mavi and Vestel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mavi Giyim Sanayi and Vestel Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestel Elektronik Sanayi and Mavi Giyim 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 Mavi Giyim Sanayi are associated (or correlated) with Vestel Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestel Elektronik Sanayi has no effect on the direction of Mavi Giyim i.e., Mavi Giyim and Vestel Elektronik go up and down completely randomly.

Pair Corralation between Mavi Giyim and Vestel Elektronik

If you would invest  0.00  in Mavi Giyim Sanayi on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Mavi Giyim Sanayi or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Mavi Giyim Sanayi  vs.  Vestel Elektronik Sanayi

Mavi Giyim Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mavi Giyim Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mavi Giyim is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Vestel Elektronik Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vestel Elektronik Sanayi 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 Mavi Giyim and Vestel Elektronik

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

The idea behind Mavi Giyim Sanayi and Vestel Elektronik Sanayi 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.