Correlation Between Yapi Ve and Akbank TAS

Can any of the company-specific risk be diversified away by investing in both Yapi Ve and Akbank TAS 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 Yapi Ve and Akbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yapi ve Kredi and Akbank TAS, you can compare the effects of market volatilities on Yapi Ve and Akbank TAS 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 Yapi Ve with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Akbank TAS.

Diversification Opportunities for Yapi Ve and Akbank TAS

0.85

Correlation Coefficient

Yapi Ve  Akbank TAS

Very poor diversification

The 3 months correlation between Yapi and Akbank is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Yapi Ve 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 Yapi ve Kredi are associated (or correlated) with Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Yapi Ve i.e., Yapi Ve and Akbank TAS go up and down completely randomly.

Pair Corralation between Yapi Ve and Akbank TAS

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Akbank TAS. In addition to that, Yapi Ve is 1.03 times more volatile than Akbank TAS. It trades about -0.11 of its total potential returns per unit of risk. Akbank TAS is currently generating about -0.1 per unit of volatility. If you would invest  6,422  in Akbank TAS on December 30, 2024 and sell it today you would lose (1,197) from holding Akbank TAS or give up 18.64% of portfolio value over 90 days.

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

Yapi ve Kredi  vs.  Akbank TAS

Yapi ve Kredi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yapi ve Kredi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Akbank TAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akbank TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Yapi Ve and Akbank TAS

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

The idea behind Yapi ve Kredi and Akbank 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 Commodity Directory module to find actively traded commodities issued by global exchanges.