Correlation Between Tumosan and Yapi Ve

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

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

Diversification Opportunities for Tumosan and Yapi Ve

0.57

Correlation Coefficient

Tumosan  Yapi Ve

Very weak diversification

The 3 months correlation between Tumosan and Yapi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tumosan Motor ve 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 Tumosan 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 Tumosan Motor ve 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 Tumosan i.e., Tumosan and Yapi Ve go up and down completely randomly.

Pair Corralation between Tumosan and Yapi Ve

Assuming the 90 days trading horizon Tumosan Motor ve is expected to generate 0.86 times more return on investment than Yapi Ve. However, Tumosan Motor ve is 1.16 times less risky than Yapi Ve. It trades about -0.11 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about -0.11 per unit of risk. If you would invest  11,440  in Tumosan Motor ve on December 30, 2024 and sell it today you would lose (2,080) from holding Tumosan Motor ve or give up 18.18% of portfolio value over 90 days.

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

Tumosan Motor ve  vs.  Yapi ve Kredi

Tumosan Motor ve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tumosan Motor ve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Yapi ve Kredi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yapi ve Kredi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent 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.

Pair Trading with Tumosan and Yapi Ve

The main advantage of trading using opposite Tumosan and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tumosan 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 Tumosan Motor ve 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.