Correlation Between Unlu Yatirim and Gozde Girisim

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

By analyzing existing cross correlation between Unlu Yatirim Holding and Gozde Girisim Sermayesi, you can compare the effects of market volatilities on Unlu Yatirim and Gozde Girisim 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 Unlu Yatirim with a short position of Gozde Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and Gozde Girisim.

Diversification Opportunities for Unlu Yatirim and Gozde Girisim

0.08

Correlation Coefficient

Unlu Yatirim  Gozde Girisim

Significant diversification

The 3 months correlation between Unlu and Gozde is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding and Gozde Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gozde Girisim Sermayesi and Unlu 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 Unlu Yatirim Holding are associated (or correlated) with Gozde Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gozde Girisim Sermayesi has no effect on the direction of Unlu Yatirim i.e., Unlu Yatirim and Gozde Girisim go up and down completely randomly.

Pair Corralation between Unlu Yatirim and Gozde Girisim

Assuming the 90 days trading horizon Unlu Yatirim Holding is expected to generate 0.75 times more return on investment than Gozde Girisim. However, Unlu Yatirim Holding is 1.33 times less risky than Gozde Girisim. It trades about -0.01 of its potential returns per unit of risk. Gozde Girisim Sermayesi is currently generating about -0.03 per unit of risk. If you would invest  1,449  in Unlu Yatirim Holding on September 25, 2024 and sell it today you would lose (7.00) from holding Unlu Yatirim Holding or give up 0.48% of portfolio value over 90 days.

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

Unlu Yatirim Holding  vs.  Gozde Girisim Sermayesi

Unlu Yatirim Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Unlu Yatirim Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Unlu Yatirim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Gozde Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gozde Girisim Sermayesi 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Unlu Yatirim and Gozde Girisim

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

The idea behind Unlu Yatirim Holding and Gozde Girisim Sermayesi 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.