Correlation Between Yaprak Sut and Yapi Ve

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

By analyzing existing cross correlation between Yaprak Sut ve and Yapi ve Kredi, you can compare the effects of market volatilities on Yaprak Sut and Yapi Ve 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 Yaprak Sut with a short position of Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yaprak Sut and Yapi Ve.

Diversification Opportunities for Yaprak Sut and Yapi Ve

0.78

Correlation Coefficient

Yaprak Sut  Yapi Ve

Poor diversification

The 3 months correlation between Yaprak and Yapi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yaprak Sut ve and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi and Yaprak Sut 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 Yaprak Sut ve are associated (or correlated) with Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Yaprak Sut i.e., Yaprak Sut and Yapi Ve go up and down completely randomly.

Pair Corralation between Yaprak Sut and Yapi Ve

Assuming the 90 days trading horizon Yaprak Sut ve is expected to generate 1.58 times more return on investment than Yapi Ve. However, Yaprak Sut is 1.58 times more volatile than Yapi ve Kredi. It trades about 0.41 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about -0.06 per unit of risk. If you would invest  49,500  in Yaprak Sut ve on October 9, 2024 and sell it today you would earn a total of  18,750  from holding Yaprak Sut ve or generate 37.88% return on investment over 90 days.

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

Yaprak Sut ve  vs.  Yapi ve Kredi

Yaprak Sut ve

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Yaprak Sut ve are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yaprak Sut demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yapi ve Kredi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yaprak Sut and Yapi Ve

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

The idea behind Yaprak Sut ve and Yapi ve Kredi 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.