Correlation Between Turkiye Vakiflar and Mackolik Internet

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

By analyzing existing cross correlation between Turkiye Vakiflar Bankasi and Mackolik Internet Hizmetleri, you can compare the effects of market volatilities on Turkiye Vakiflar and Mackolik Internet 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 Turkiye Vakiflar with a short position of Mackolik Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Vakiflar and Mackolik Internet.

Diversification Opportunities for Turkiye Vakiflar and Mackolik Internet

0.67

Correlation Coefficient

Turkiye Vakiflar  Mackolik Internet

Poor diversification

The 3 months correlation between Turkiye and Mackolik is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Vakiflar Bankasi and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and Turkiye Vakiflar 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 Turkiye Vakiflar Bankasi are associated (or correlated) with Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of Turkiye Vakiflar i.e., Turkiye Vakiflar and Mackolik Internet go up and down completely randomly.

Pair Corralation between Turkiye Vakiflar and Mackolik Internet

Assuming the 90 days trading horizon Turkiye Vakiflar Bankasi is expected to generate 0.86 times more return on investment than Mackolik Internet. However, Turkiye Vakiflar Bankasi is 1.16 times less risky than Mackolik Internet. It trades about 0.04 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.03 per unit of risk. If you would invest  2,350  in Turkiye Vakiflar Bankasi on December 26, 2024 and sell it today you would earn a total of  120.00  from holding Turkiye Vakiflar Bankasi or generate 5.11% return on investment over 90 days.

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

Turkiye Vakiflar Bankasi  vs.  Mackolik Internet Hizmetleri

Turkiye Vakiflar Bankasi

Risk-Adjusted Performance

Insignificant

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

Mackolik Internet

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Turkiye Vakiflar and Mackolik Internet

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

The idea behind Turkiye Vakiflar Bankasi and Mackolik Internet Hizmetleri 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.

Check out your portfolio center.

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.