Correlation Between Yapi Ve and Atlantis Yatirim

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

Diversification Opportunities for Yapi Ve and Atlantis Yatirim

-0.38

Correlation Coefficient

Yapi Ve  Atlantis Yatirim

Very good diversification

The 3 months correlation between Yapi and Atlantis is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Atlantis Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis Yatirim Holding 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 Atlantis Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis Yatirim Holding has no effect on the direction of Yapi Ve i.e., Yapi Ve and Atlantis Yatirim go up and down completely randomly.

Pair Corralation between Yapi Ve and Atlantis Yatirim

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Atlantis Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Yapi ve Kredi is 1.16 times less risky than Atlantis Yatirim. The stock trades about -0.07 of its potential returns per unit of risk. The Atlantis Yatirim Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,210  in Atlantis Yatirim Holding on December 24, 2024 and sell it today you would earn a total of  190.00  from holding Atlantis Yatirim Holding or generate 4.51% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Atlantis Yatirim Holding

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.

Atlantis Yatirim Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantis Yatirim Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Atlantis Yatirim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Yapi Ve and Atlantis Yatirim

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

The idea behind Yapi ve Kredi and Atlantis 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.