Correlation Between Yatas Yatak and Gedik Yatirim

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

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

Diversification Opportunities for Yatas Yatak and Gedik Yatirim

0.55

Correlation Coefficient

Yatas Yatak  Gedik Yatirim

Very weak diversification

The 3 months correlation between Yatas and Gedik is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Yatas Yatak ve and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Yatas Yatak 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 Yatas Yatak ve are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Yatas Yatak i.e., Yatas Yatak and Gedik Yatirim go up and down completely randomly.

Pair Corralation between Yatas Yatak and Gedik Yatirim

Assuming the 90 days trading horizon Yatas Yatak ve is expected to generate 0.97 times more return on investment than Gedik Yatirim. However, Yatas Yatak ve is 1.03 times less risky than Gedik Yatirim. It trades about -0.05 of its potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about -0.05 per unit of risk. If you would invest  2,710  in Yatas Yatak ve on December 2, 2024 and sell it today you would lose (190.00) from holding Yatas Yatak ve or give up 7.01% of portfolio value over 90 days.

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

Yatas Yatak ve  vs.  Gedik Yatirim Menkul

Yatas Yatak ve

Risk-Adjusted Performance

Very Weak

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

Gedik Yatirim Menkul

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gedik Yatirim Menkul 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 Yatas Yatak and Gedik Yatirim

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

The idea behind Yatas Yatak ve and Gedik 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.