Correlation Between Pergamon Status and Yesil Yapi

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

By analyzing existing cross correlation between Pergamon Status Dis and Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Pergamon Status 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 Pergamon Status with a short position of Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pergamon Status and Yesil Yapi.

Diversification Opportunities for Pergamon Status and Yesil Yapi

0.49

Correlation Coefficient

Pergamon Status  Yesil Yapi

Very weak diversification

The 3 months correlation between Pergamon and Yesil is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pergamon Status Dis 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 Pergamon Status 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 Pergamon Status Dis 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 Pergamon Status i.e., Pergamon Status and Yesil Yapi go up and down completely randomly.

Pair Corralation between Pergamon Status and Yesil Yapi

Assuming the 90 days trading horizon Pergamon Status Dis is expected to generate 0.71 times more return on investment than Yesil Yapi. However, Pergamon Status Dis is 1.42 times less risky than Yesil Yapi. It trades about -0.08 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about -0.2 per unit of risk. If you would invest  8,495  in Pergamon Status Dis on December 25, 2024 and sell it today you would lose (1,195) from holding Pergamon Status Dis or give up 14.07% of portfolio value over 90 days.

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

Pergamon Status Dis  vs.  Yesil Yapi Endustrisi

Pergamon Status Dis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pergamon Status Dis 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.

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 Pergamon Status and Yesil Yapi

The main advantage of trading using opposite Pergamon Status and Yesil Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pergamon Status 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 Pergamon Status Dis 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.