Correlation Between Tekfen Holding and Logo Yazilim

Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and Logo Yazilim 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 Tekfen Holding and Logo Yazilim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tekfen Holding AS and Logo Yazilim Sanayi, you can compare the effects of market volatilities on Tekfen Holding and Logo Yazilim 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 Tekfen Holding with a short position of Logo Yazilim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and Logo Yazilim.

Diversification Opportunities for Tekfen Holding and Logo Yazilim

0.23

Correlation Coefficient

Tekfen Holding  Logo Yazilim

Modest diversification

The 3 months correlation between Tekfen and Logo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and Logo Yazilim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logo Yazilim Sanayi and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with Logo Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logo Yazilim Sanayi has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and Logo Yazilim go up and down completely randomly.

Pair Corralation between Tekfen Holding and Logo Yazilim

Assuming the 90 days trading horizon Tekfen Holding AS is expected to under-perform the Logo Yazilim. But the stock apears to be less risky and, when comparing its historical volatility, Tekfen Holding AS is 1.05 times less risky than Logo Yazilim. The stock trades about -0.09 of its potential returns per unit of risk. The Logo Yazilim Sanayi is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  11,800  in Logo Yazilim Sanayi on December 2, 2024 and sell it today you would lose (410.00) from holding Logo Yazilim Sanayi or give up 3.47% of portfolio value over 90 days.

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

Tekfen Holding AS  vs.  Logo Yazilim Sanayi

Tekfen Holding AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tekfen Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Logo Yazilim Sanayi

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Tekfen Holding and Logo Yazilim

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

The idea behind Tekfen Holding AS and Logo Yazilim Sanayi 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.