Correlation Between Ufuk Yatirim and Koza Anadolu

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

By analyzing existing cross correlation between Ufuk Yatirim Yonetim and Koza Anadolu Metal, you can compare the effects of market volatilities on Ufuk Yatirim and Koza Anadolu 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 Ufuk Yatirim with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and Koza Anadolu.

Diversification Opportunities for Ufuk Yatirim and Koza Anadolu

-0.41

Correlation Coefficient

Ufuk Yatirim  Koza Anadolu

Very good diversification

The 3 months correlation between Ufuk and Koza is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and Ufuk Yatirim 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 Ufuk Yatirim Yonetim are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Ufuk Yatirim i.e., Ufuk Yatirim and Koza Anadolu go up and down completely randomly.

Pair Corralation between Ufuk Yatirim and Koza Anadolu

Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to generate 1.36 times more return on investment than Koza Anadolu. However, Ufuk Yatirim is 1.36 times more volatile than Koza Anadolu Metal. It trades about 0.07 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.09 per unit of risk. If you would invest  55,300  in Ufuk Yatirim Yonetim on December 11, 2024 and sell it today you would earn a total of  4,150  from holding Ufuk Yatirim Yonetim or generate 7.5% return on investment over 90 days.

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

Ufuk Yatirim Yonetim  vs.  Koza Anadolu Metal

Ufuk Yatirim Yonetim

Risk-Adjusted Performance

Very Weak

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

Koza Anadolu Metal

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Koza Anadolu Metal are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Koza Anadolu may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ufuk Yatirim and Koza Anadolu

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

The idea behind Ufuk Yatirim Yonetim and Koza Anadolu Metal 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.