Correlation Between Trend Gayrimenkul and Seker Finansal

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

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

Diversification Opportunities for Trend Gayrimenkul and Seker Finansal

-0.45

Correlation Coefficient

Trend Gayrimenkul  Seker Finansal

Very good diversification

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

Pair Corralation between Trend Gayrimenkul and Seker Finansal

Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 1.36 times more return on investment than Seker Finansal. However, Trend Gayrimenkul is 1.36 times more volatile than Seker Finansal Kiralama. It trades about 0.07 of its potential returns per unit of risk. Seker Finansal Kiralama is currently generating about 0.01 per unit of risk. If you would invest  1,079  in Trend Gayrimenkul Yatirim on October 9, 2024 and sell it today you would earn a total of  114.00  from holding Trend Gayrimenkul Yatirim or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Trend Gayrimenkul Yatirim  vs.  Seker Finansal Kiralama

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.

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.

Pair Trading with Trend Gayrimenkul and Seker Finansal

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

The idea behind Trend Gayrimenkul Yatirim and Seker Finansal Kiralama 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.