Correlation Between Oracle and Turkiye Vakiflar

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

By analyzing existing cross correlation between Oracle and Turkiye Vakiflar Bankasi, you can compare the effects of market volatilities on Oracle and Turkiye Vakiflar 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 Oracle with a short position of Turkiye Vakiflar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Turkiye Vakiflar.

Diversification Opportunities for Oracle and Turkiye Vakiflar

-0.35

Correlation Coefficient

Oracle  Turkiye Vakiflar

Very good diversification

The 3 months correlation between Oracle and Turkiye is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Turkiye Vakiflar Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Vakiflar Bankasi and Oracle 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 Oracle are associated (or correlated) with Turkiye Vakiflar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Vakiflar Bankasi has no effect on the direction of Oracle i.e., Oracle and Turkiye Vakiflar go up and down completely randomly.

Pair Corralation between Oracle and Turkiye Vakiflar

Given the investment horizon of 90 days Oracle is expected to under-perform the Turkiye Vakiflar. In addition to that, Oracle is 1.61 times more volatile than Turkiye Vakiflar Bankasi. It trades about -0.03 of its total potential returns per unit of risk. Turkiye Vakiflar Bankasi is currently generating about 0.1 per unit of volatility. If you would invest  2,314  in Turkiye Vakiflar Bankasi on December 2, 2024 and sell it today you would earn a total of  276.00  from holding Turkiye Vakiflar Bankasi or generate 11.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.85%
Values	Daily Returns

Oracle  vs.  Turkiye Vakiflar Bankasi

Oracle

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oracle has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Oracle is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Turkiye Vakiflar Bankasi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Vakiflar Bankasi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Vakiflar may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Oracle and Turkiye Vakiflar

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

The idea behind Oracle and Turkiye Vakiflar Bankasi 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.