Correlation Between Sok Marketler and Yapi Ve

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

By analyzing existing cross correlation between Sok Marketler Ticaret and Yapi ve Kredi, you can compare the effects of market volatilities on Sok Marketler and Yapi Ve 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 Sok Marketler with a short position of Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Yapi Ve.

Diversification Opportunities for Sok Marketler and Yapi Ve

0.27

Correlation Coefficient

Sok Marketler  Yapi Ve

Modest diversification

The 3 months correlation between Sok and Yapi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Sok Marketler i.e., Sok Marketler and Yapi Ve go up and down completely randomly.

Pair Corralation between Sok Marketler and Yapi Ve

Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the Yapi Ve. But the stock apears to be less risky and, when comparing its historical volatility, Sok Marketler Ticaret is 1.33 times less risky than Yapi Ve. The stock trades about -0.03 of its potential returns per unit of risk. The Yapi ve Kredi is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,080  in Yapi ve Kredi on October 26, 2024 and sell it today you would earn a total of  220.00  from holding Yapi ve Kredi or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Sok Marketler Ticaret  vs.  Yapi ve Kredi

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sok Marketler is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Yapi ve Kredi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sok Marketler and Yapi Ve

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

The idea behind Sok Marketler Ticaret and Yapi ve Kredi 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.