Correlation Between Yesil Yatirim and Yesil Yapi

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

Diversification Opportunities for Yesil Yatirim and Yesil Yapi

0.99

Correlation Coefficient

Yesil Yatirim  Yesil Yapi

No risk reduction

The 3 months correlation between Yesil and Yesil is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Yesil Yatirim i.e., Yesil Yatirim and Yesil Yapi go up and down completely randomly.

Pair Corralation between Yesil Yatirim and Yesil Yapi

Assuming the 90 days trading horizon Yesil Yatirim Holding is expected to generate 1.04 times more return on investment than Yesil Yapi. However, Yesil Yatirim is 1.04 times more volatile than Yesil Yapi Endustrisi. It trades about 0.2 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.18 per unit of risk. If you would invest  128.00  in Yesil Yatirim Holding on October 7, 2024 and sell it today you would earn a total of  78.00  from holding Yesil Yatirim Holding or generate 60.94% return on investment over 90 days.

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

Yesil Yatirim Holding  vs.  Yesil Yapi Endustrisi

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.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yesil Yatirim and Yesil Yapi

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

The idea behind Yesil Yatirim Holding and Yesil Yapi Endustrisi 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 Stocks Directory module to find actively traded stocks across global markets.