Correlation Between Vestel Beyaz and Is Yatirim

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

By analyzing existing cross correlation between Vestel Beyaz Esya and Is Yatirim Menkul, you can compare the effects of market volatilities on Vestel Beyaz and Is Yatirim 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 Vestel Beyaz with a short position of Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestel Beyaz and Is Yatirim.

Diversification Opportunities for Vestel Beyaz and Is Yatirim

-0.04

Correlation Coefficient

Vestel Beyaz  Is Yatirim

Good diversification

The 3 months correlation between Vestel and ISMEN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vestel Beyaz Esya and Is Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Menkul and Vestel Beyaz 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 Vestel Beyaz Esya are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Menkul has no effect on the direction of Vestel Beyaz i.e., Vestel Beyaz and Is Yatirim go up and down completely randomly.

Pair Corralation between Vestel Beyaz and Is Yatirim

Assuming the 90 days trading horizon Vestel Beyaz Esya is expected to under-perform the Is Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Vestel Beyaz Esya is 1.48 times less risky than Is Yatirim. The stock trades about -0.02 of its potential returns per unit of risk. The Is Yatirim Menkul is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,458  in Is Yatirim Menkul on October 6, 2024 and sell it today you would earn a total of  1,144  from holding Is Yatirim Menkul or generate 33.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Vestel Beyaz Esya  vs.  Is Yatirim Menkul

Vestel Beyaz Esya

Risk-Adjusted Performance

0 of 100

Very Weak

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

Is Yatirim Menkul

Risk-Adjusted Performance

14 of 100

Good

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

Pair Trading with Vestel Beyaz and Is Yatirim

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

The idea behind Vestel Beyaz Esya and Is Yatirim Menkul 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.