Correlation Between Ral Yatirim and Girisim Elektrik

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

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

Diversification Opportunities for Ral Yatirim and Girisim Elektrik

0.58

Correlation Coefficient

Ral Yatirim  Girisim Elektrik

Very weak diversification

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

Pair Corralation between Ral Yatirim and Girisim Elektrik

Assuming the 90 days trading horizon Ral Yatirim Holding is expected to generate 1.0 times more return on investment than Girisim Elektrik. However, Ral Yatirim Holding is 1.0 times less risky than Girisim Elektrik. It trades about 0.25 of its potential returns per unit of risk. Girisim Elektrik Taahhut is currently generating about 0.01 per unit of risk. If you would invest  5,420  in Ral Yatirim Holding on December 23, 2024 and sell it today you would earn a total of  3,340  from holding Ral Yatirim Holding or generate 61.62% return on investment over 90 days.

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

Ral Yatirim Holding  vs.  Girisim Elektrik Taahhut

Ral Yatirim Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ral Yatirim Holding are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ral Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ral Yatirim and Girisim Elektrik

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

The idea behind Ral Yatirim Holding and Girisim Elektrik Taahhut 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.