Correlation Between Yayla Enerji and Ral Yatirim

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

By analyzing existing cross correlation between Yayla Enerji Uretim and Ral Yatirim Holding, you can compare the effects of market volatilities on Yayla Enerji and Ral 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 Yayla Enerji with a short position of Ral Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yayla Enerji and Ral Yatirim.

Diversification Opportunities for Yayla Enerji and Ral Yatirim

0.67

Correlation Coefficient

Yayla Enerji  Ral Yatirim

Poor diversification

The 3 months correlation between Yayla and Ral is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Yayla Enerji Uretim and Ral Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ral Yatirim Holding and Yayla Enerji 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 Yayla Enerji Uretim are associated (or correlated) with Ral Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ral Yatirim Holding has no effect on the direction of Yayla Enerji i.e., Yayla Enerji and Ral Yatirim go up and down completely randomly.

Pair Corralation between Yayla Enerji and Ral Yatirim

Assuming the 90 days trading horizon Yayla Enerji is expected to generate 6.11 times less return on investment than Ral Yatirim. But when comparing it to its historical volatility, Yayla Enerji Uretim is 1.4 times less risky than Ral Yatirim. It trades about 0.06 of its potential returns per unit of risk. Ral Yatirim Holding is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  5,420  in Ral Yatirim Holding on December 21, 2024 and sell it today you would earn a total of  3,340  from holding Ral Yatirim Holding or generate 61.62% return on investment over 90 days.

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

Yayla Enerji Uretim  vs.  Ral Yatirim Holding

Yayla Enerji Uretim

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yayla Enerji Uretim are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yayla Enerji may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Ral Yatirim Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ral Yatirim Holding are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ral Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yayla Enerji and Ral Yatirim

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

The idea behind Yayla Enerji Uretim and Ral Yatirim Holding 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.