Correlation Between Pamel Yenilenebilir and Marka Yatirim

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

By analyzing existing cross correlation between Pamel Yenilenebilir Elektrik and Marka Yatirim Holding, you can compare the effects of market volatilities on Pamel Yenilenebilir and Marka 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 Pamel Yenilenebilir with a short position of Marka Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pamel Yenilenebilir and Marka Yatirim.

Diversification Opportunities for Pamel Yenilenebilir and Marka Yatirim

0.58

Correlation Coefficient

Pamel Yenilenebilir  Marka Yatirim

Very weak diversification

The 3 months correlation between Pamel and Marka is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pamel Yenilenebilir Elektrik and Marka Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marka Yatirim Holding and Pamel Yenilenebilir 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 Pamel Yenilenebilir Elektrik are associated (or correlated) with Marka Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marka Yatirim Holding has no effect on the direction of Pamel Yenilenebilir i.e., Pamel Yenilenebilir and Marka Yatirim go up and down completely randomly.

Pair Corralation between Pamel Yenilenebilir and Marka Yatirim

Assuming the 90 days trading horizon Pamel Yenilenebilir Elektrik is expected to generate 0.48 times more return on investment than Marka Yatirim. However, Pamel Yenilenebilir Elektrik is 2.07 times less risky than Marka Yatirim. It trades about -0.11 of its potential returns per unit of risk. Marka Yatirim Holding is currently generating about -0.06 per unit of risk. If you would invest  9,135  in Pamel Yenilenebilir Elektrik on December 3, 2024 and sell it today you would lose (1,120) from holding Pamel Yenilenebilir Elektrik or give up 12.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pamel Yenilenebilir Elektrik  vs.  Marka Yatirim Holding

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 latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Marka Yatirim Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marka Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Pamel Yenilenebilir and Marka Yatirim

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

The idea behind Pamel Yenilenebilir Elektrik and Marka Yatirim Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.