Correlation Between Seker Finansal and Trend Gayrimenkul

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

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

Diversification Opportunities for Seker Finansal and Trend Gayrimenkul

-0.45

Correlation Coefficient

Seker Finansal  Trend Gayrimenkul

Very good diversification

The 3 months correlation between Seker and Trend is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim and Seker Finansal 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 Seker Finansal Kiralama are associated (or correlated) with Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Seker Finansal i.e., Seker Finansal and Trend Gayrimenkul go up and down completely randomly.

Pair Corralation between Seker Finansal and Trend Gayrimenkul

Assuming the 90 days trading horizon Seker Finansal Kiralama is expected to under-perform the Trend Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Seker Finansal Kiralama is 1.64 times less risky than Trend Gayrimenkul. The stock trades about -0.24 of its potential returns per unit of risk. The Trend Gayrimenkul Yatirim is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  1,240  in Trend Gayrimenkul Yatirim on October 9, 2024 and sell it today you would lose (47.00) from holding Trend Gayrimenkul Yatirim or give up 3.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Seker Finansal Kiralama  vs.  Trend Gayrimenkul Yatirim

Seker Finansal Kiralama

Risk-Adjusted Performance

0 of 100

Very Weak

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

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Trend Gayrimenkul Yatirim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Trend Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Seker Finansal and Trend Gayrimenkul

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

The idea behind Seker Finansal Kiralama and Trend 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.