Correlation Between Yapi Ve and Dogus Otomotiv

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

Diversification Opportunities for Yapi Ve and Dogus Otomotiv

0.3

Correlation Coefficient

Yapi Ve  Dogus Otomotiv

Weak diversification

The 3 months correlation between Yapi and Dogus is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Dogus Otomotiv Servis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Otomotiv Servis 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 Dogus Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Otomotiv Servis has no effect on the direction of Yapi Ve i.e., Yapi Ve and Dogus Otomotiv go up and down completely randomly.

Pair Corralation between Yapi Ve and Dogus Otomotiv

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 1.26 times more return on investment than Dogus Otomotiv. However, Yapi Ve is 1.26 times more volatile than Dogus Otomotiv Servis. It trades about 0.02 of its potential returns per unit of risk. Dogus Otomotiv Servis is currently generating about -0.22 per unit of risk. If you would invest  2,900  in Yapi ve Kredi on December 2, 2024 and sell it today you would earn a total of  40.00  from holding Yapi ve Kredi or generate 1.38% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Dogus Otomotiv Servis

Yapi ve Kredi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Yapi Ve is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Dogus Otomotiv Servis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogus Otomotiv Servis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Yapi Ve and Dogus Otomotiv

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

The idea behind Yapi ve Kredi and Dogus Otomotiv Servis 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.