Correlation Between Vakif Menkul and Vakif Gayrimenkul

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

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

Diversification Opportunities for Vakif Menkul and Vakif Gayrimenkul

0.21

Correlation Coefficient

Vakif Menkul  Vakif Gayrimenkul

Modest diversification

The 3 months correlation between Vakif and Vakif is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Menkul Kiymet 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 Vakif Menkul 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 Menkul Kiymet 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 Vakif Menkul i.e., Vakif Menkul and Vakif Gayrimenkul go up and down completely randomly.

Pair Corralation between Vakif Menkul and Vakif Gayrimenkul

Assuming the 90 days trading horizon Vakif Menkul Kiymet is expected to under-perform the Vakif Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Vakif Menkul Kiymet is 1.03 times less risky than Vakif Gayrimenkul. The stock trades about -0.08 of its potential returns per unit of risk. The Vakif Gayrimenkul Yatirim is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  201.00  in Vakif Gayrimenkul Yatirim on December 22, 2024 and sell it today you would lose (12.00) from holding Vakif Gayrimenkul Yatirim or give up 5.97% of portfolio value over 90 days.

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

Vakif Menkul Kiymet  vs.  Vakif Gayrimenkul Yatirim

Vakif Menkul Kiymet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vakif Menkul Kiymet 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Vakif Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Vakif Menkul and Vakif Gayrimenkul

The main advantage of trading using opposite Vakif Menkul and Vakif Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vakif Menkul 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 Vakif Menkul Kiymet 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.