Correlation Between Yesil Yatirim and Nigbas Nigde

Can any of the company-specific risk be diversified away by investing in both Yesil Yatirim and Nigbas Nigde 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 Nigbas Nigde 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 Nigbas Nigde Beton, you can compare the effects of market volatilities on Yesil Yatirim and Nigbas Nigde 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 Nigbas Nigde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yatirim and Nigbas Nigde.

Diversification Opportunities for Yesil Yatirim and Nigbas Nigde

-0.7

Correlation Coefficient

Yesil Yatirim  Nigbas Nigde

Excellent diversification

The 3 months correlation between Yesil and Nigbas is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton 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 Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of Yesil Yatirim i.e., Yesil Yatirim and Nigbas Nigde go up and down completely randomly.

Pair Corralation between Yesil Yatirim and Nigbas Nigde

Assuming the 90 days trading horizon Yesil Yatirim is expected to generate 12.94 times less return on investment than Nigbas Nigde. But when comparing it to its historical volatility, Yesil Yatirim Holding is 1.16 times less risky than Nigbas Nigde. It trades about 0.01 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,600  in Nigbas Nigde Beton on September 3, 2024 and sell it today you would earn a total of  236.00  from holding Nigbas Nigde Beton or generate 14.75% return on investment over 90 days.

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

Yesil Yatirim Holding  vs.  Nigbas Nigde Beton

Yesil Yatirim Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Nigbas Nigde Beton

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nigbas Nigde Beton are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Nigbas Nigde demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yesil Yatirim and Nigbas Nigde

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

The idea behind Yesil Yatirim Holding and Nigbas Nigde Beton 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.