Correlation Between Peker Gayrimenkul and Turkiye Vakiflar

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

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

Diversification Opportunities for Peker Gayrimenkul and Turkiye Vakiflar

-0.25

Correlation Coefficient

Peker Gayrimenkul  Turkiye Vakiflar

Very good diversification

The 3 months correlation between Peker and Turkiye is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul 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 Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul i.e., Peker Gayrimenkul and Turkiye Vakiflar go up and down completely randomly.

Pair Corralation between Peker Gayrimenkul and Turkiye Vakiflar

Assuming the 90 days trading horizon Peker Gayrimenkul Yatirim is expected to under-perform the Turkiye Vakiflar. In addition to that, Peker Gayrimenkul is 1.56 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 0.0 per unit of volatility. If you would invest  2,294  in Turkiye Vakiflar Bankasi on December 24, 2024 and sell it today you would lose (68.00) from holding Turkiye Vakiflar Bankasi or give up 2.96% of portfolio value over 90 days.

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

Peker Gayrimenkul Yatirim  vs.  Turkiye Vakiflar Bankasi

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peker Gayrimenkul Yatirim 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.

Turkiye Vakiflar Bankasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Vakiflar Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turkiye Vakiflar is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Peker Gayrimenkul and Turkiye Vakiflar

The main advantage of trading using opposite Peker Gayrimenkul and Turkiye Vakiflar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peker Gayrimenkul 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 Peker Gayrimenkul Yatirim 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.