Correlation Between Yesil Yatirim and Gubre Fabrikalari

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

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

Diversification Opportunities for Yesil Yatirim and Gubre Fabrikalari

0.9

Correlation Coefficient

Yesil Yatirim  Gubre Fabrikalari

Almost no diversification

The 3 months correlation between Yesil and Gubre is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding and Gubre Fabrikalari TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gubre Fabrikalari TAS and Yesil Yatirim 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 Yesil Yatirim Holding are associated (or correlated) with Gubre Fabrikalari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gubre Fabrikalari TAS has no effect on the direction of Yesil Yatirim i.e., Yesil Yatirim and Gubre Fabrikalari go up and down completely randomly.

Pair Corralation between Yesil Yatirim and Gubre Fabrikalari

Assuming the 90 days trading horizon Yesil Yatirim Holding is expected to generate 1.56 times more return on investment than Gubre Fabrikalari. However, Yesil Yatirim is 1.56 times more volatile than Gubre Fabrikalari TAS. It trades about 0.02 of its potential returns per unit of risk. Gubre Fabrikalari TAS is currently generating about 0.0 per unit of risk. If you would invest  259.00  in Yesil Yatirim Holding on October 13, 2024 and sell it today you would lose (58.00) from holding Yesil Yatirim Holding or give up 22.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.8%
Values	Daily Returns

Yesil Yatirim Holding  vs.  Gubre Fabrikalari TAS

Yesil Yatirim Holding

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Gubre Fabrikalari TAS

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gubre Fabrikalari TAS are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Gubre Fabrikalari demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yesil Yatirim and Gubre Fabrikalari

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

The idea behind Yesil Yatirim Holding and Gubre Fabrikalari TAS 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..