Correlation Between Yapi Ve and Guler Yatirim

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

Diversification Opportunities for Yapi Ve and Guler Yatirim

0.61

Correlation Coefficient

Yapi Ve  Guler Yatirim

Poor diversification

The 3 months correlation between Yapi and Guler is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Yapi Ve i.e., Yapi Ve and Guler Yatirim go up and down completely randomly.

Pair Corralation between Yapi Ve and Guler Yatirim

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Guler Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Yapi ve Kredi is 1.07 times less risky than Guler Yatirim. The stock trades about -0.03 of its potential returns per unit of risk. The Guler Yatirim Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,316  in Guler Yatirim Holding on September 21, 2024 and sell it today you would earn a total of  22.00  from holding Guler Yatirim Holding or generate 1.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.21%
Values	Daily Returns

Yapi ve Kredi  vs.  Guler Yatirim Holding

Yapi ve Kredi

Risk-Adjusted Performance

0 of 100

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 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.

Guler Yatirim Holding

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guler Yatirim Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Guler Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yapi Ve and Guler Yatirim

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

The idea behind Yapi ve Kredi and Guler 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.