Correlation Between Vakif Finansal and Jantsa Jant

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

By analyzing existing cross correlation between Vakif Finansal Kiralama and Jantsa Jant Sanayi, you can compare the effects of market volatilities on Vakif Finansal and Jantsa Jant 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 Vakif Finansal with a short position of Jantsa Jant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vakif Finansal and Jantsa Jant.

Diversification Opportunities for Vakif Finansal and Jantsa Jant

-0.39

Correlation Coefficient

Vakif Finansal  Jantsa Jant

Very good diversification

The 3 months correlation between Vakif and Jantsa is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Finansal Kiralama and Jantsa Jant Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jantsa Jant Sanayi and Vakif Finansal 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 Vakif Finansal Kiralama are associated (or correlated) with Jantsa Jant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jantsa Jant Sanayi has no effect on the direction of Vakif Finansal i.e., Vakif Finansal and Jantsa Jant go up and down completely randomly.

Pair Corralation between Vakif Finansal and Jantsa Jant

Assuming the 90 days trading horizon Vakif Finansal Kiralama is expected to generate 1.52 times more return on investment than Jantsa Jant. However, Vakif Finansal is 1.52 times more volatile than Jantsa Jant Sanayi. It trades about 0.18 of its potential returns per unit of risk. Jantsa Jant Sanayi is currently generating about -0.05 per unit of risk. If you would invest  150.00  in Vakif Finansal Kiralama on October 22, 2024 and sell it today you would earn a total of  57.00  from holding Vakif Finansal Kiralama or generate 38.0% return on investment over 90 days.

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

Vakif Finansal Kiralama  vs.  Jantsa Jant Sanayi

Vakif Finansal Kiralama

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Finansal Kiralama are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Vakif Finansal demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Jantsa Jant Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jantsa Jant Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Vakif Finansal and Jantsa Jant

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

The idea behind Vakif Finansal Kiralama and Jantsa Jant 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..