Correlation Between Penguen Gida and Is Gayrimenkul

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

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

Diversification Opportunities for Penguen Gida and Is Gayrimenkul

0.88

Correlation Coefficient

Penguen Gida  Is Gayrimenkul

Very poor diversification

The 3 months correlation between Penguen and ISGYO is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Is Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Gayrimenkul Yatirim and Penguen Gida 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 Penguen Gida Sanayi are associated (or correlated) with Is Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Gayrimenkul Yatirim has no effect on the direction of Penguen Gida i.e., Penguen Gida and Is Gayrimenkul go up and down completely randomly.

Pair Corralation between Penguen Gida and Is Gayrimenkul

Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to generate 0.97 times more return on investment than Is Gayrimenkul. However, Penguen Gida Sanayi is 1.03 times less risky than Is Gayrimenkul. It trades about 0.01 of its potential returns per unit of risk. Is Gayrimenkul Yatirim is currently generating about 0.0 per unit of risk. If you would invest  702.00  in Penguen Gida Sanayi on September 23, 2024 and sell it today you would lose (20.00) from holding Penguen Gida Sanayi or give up 2.85% of portfolio value over 90 days.

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

Penguen Gida Sanayi  vs.  Is Gayrimenkul Yatirim

Penguen Gida Sanayi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Penguen Gida is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Is Gayrimenkul Yatirim

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Is Gayrimenkul Yatirim are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Penguen Gida and Is Gayrimenkul

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

The idea behind Penguen Gida Sanayi and Is Gayrimenkul Yatirim 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 Transaction History module to view history of all your transactions and understand their impact on performance.