Correlation Between Peker Gayrimenkul and Yesil Yapi

Can any of the company-specific risk be diversified away by investing in both Peker Gayrimenkul and Yesil Yapi 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 Yesil Yapi 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 Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Peker Gayrimenkul and Yesil Yapi 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 Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peker Gayrimenkul and Yesil Yapi.

Diversification Opportunities for Peker Gayrimenkul and Yesil Yapi

0.03

Correlation Coefficient

Peker Gayrimenkul  Yesil Yapi

Significant diversification

The 3 months correlation between Peker and Yesil is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Peker Gayrimenkul Yatirim and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Peker Gayrimenkul i.e., Peker Gayrimenkul and Yesil Yapi go up and down completely randomly.

Pair Corralation between Peker Gayrimenkul and Yesil Yapi

Assuming the 90 days trading horizon Peker Gayrimenkul Yatirim is expected to generate 1.14 times more return on investment than Yesil Yapi. However, Peker Gayrimenkul is 1.14 times more volatile than Yesil Yapi Endustrisi. It trades about -0.03 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about -0.23 per unit of risk. If you would invest  158.00  in Peker Gayrimenkul Yatirim on December 23, 2024 and sell it today you would lose (21.00) from holding Peker Gayrimenkul Yatirim or give up 13.29% of portfolio value over 90 days.

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

Peker Gayrimenkul Yatirim  vs.  Yesil Yapi Endustrisi

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.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Yapi Endustrisi 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 Peker Gayrimenkul and Yesil Yapi

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

The idea behind Peker Gayrimenkul Yatirim and Yesil Yapi Endustrisi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.