Correlation Between Turkiye Sise and Is Yatirim

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

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

Diversification Opportunities for Turkiye Sise and Is Yatirim

0.75

Correlation Coefficient

Turkiye Sise  Is Yatirim

Poor diversification

The 3 months correlation between Turkiye and ISMEN is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Is Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Menkul and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Menkul has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Is Yatirim go up and down completely randomly.

Pair Corralation between Turkiye Sise and Is Yatirim

Assuming the 90 days trading horizon Turkiye Sise is expected to generate 19.26 times less return on investment than Is Yatirim. But when comparing it to its historical volatility, Turkiye Sise ve is 6.33 times less risky than Is Yatirim. It trades about 0.02 of its potential returns per unit of risk. Is Yatirim Menkul is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,040  in Is Yatirim Menkul on October 4, 2024 and sell it today you would earn a total of  3,700  from holding Is Yatirim Menkul or generate 355.77% return on investment over 90 days.

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

Turkiye Sise ve  vs.  Is Yatirim Menkul

Turkiye Sise ve

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Is Yatirim Menkul

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Is Yatirim Menkul are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Sise and Is Yatirim

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

The idea behind Turkiye Sise ve and Is Yatirim Menkul 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.