Correlation Between Verusaturk Girisim and Vakif Gayrimenkul

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

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

Diversification Opportunities for Verusaturk Girisim and Vakif Gayrimenkul

-0.45

Correlation Coefficient

Verusaturk Girisim  Vakif Gayrimenkul

Very good diversification

The 3 months correlation between Verusaturk and Vakif is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Verusaturk Girisim Sermayesi and Vakif Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Gayrimenkul Yatirim and Verusaturk Girisim 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 Verusaturk Girisim Sermayesi are associated (or correlated) with Vakif Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Gayrimenkul Yatirim has no effect on the direction of Verusaturk Girisim i.e., Verusaturk Girisim and Vakif Gayrimenkul go up and down completely randomly.

Pair Corralation between Verusaturk Girisim and Vakif Gayrimenkul

Assuming the 90 days trading horizon Verusaturk Girisim Sermayesi is expected to under-perform the Vakif Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Verusaturk Girisim Sermayesi is 1.38 times less risky than Vakif Gayrimenkul. The stock trades about -0.15 of its potential returns per unit of risk. The Vakif Gayrimenkul Yatirim is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  211.00  in Vakif Gayrimenkul Yatirim on October 9, 2024 and sell it today you would earn a total of  6.00  from holding Vakif Gayrimenkul Yatirim or generate 2.84% return on investment over 90 days.

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

Verusaturk Girisim Sermayesi  vs.  Vakif Gayrimenkul Yatirim

Verusaturk Girisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusaturk Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Verusaturk Girisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Vakif Gayrimenkul Yatirim

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Gayrimenkul Yatirim are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Vakif Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Verusaturk Girisim and Vakif Gayrimenkul

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

The idea behind Verusaturk Girisim Sermayesi and Vakif Gayrimenkul Yatirim 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.