Correlation Between Yapi Ve and Turkiye Is

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

Diversification Opportunities for Yapi Ve and Turkiye Is

0.33

Correlation Coefficient

Yapi Ve  Turkiye Is

Weak diversification

The 3 months correlation between Yapi and Turkiye is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Yapi Ve i.e., Yapi Ve and Turkiye Is go up and down completely randomly.

Pair Corralation between Yapi Ve and Turkiye Is

Assuming the 90 days trading horizon Yapi Ve is expected to generate 2.28 times less return on investment than Turkiye Is. But when comparing it to its historical volatility, Yapi ve Kredi is 1.71 times less risky than Turkiye Is. It trades about 0.1 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,409,560  in Turkiye Is Bankasi on December 4, 2024 and sell it today you would earn a total of  48,090,240  from holding Turkiye Is Bankasi or generate 1090.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.58%
Values	Daily Returns

Yapi ve Kredi  vs.  Turkiye Is Bankasi

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 2 (%) 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.

Turkiye Is Bankasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turkiye Is Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Turkiye Is is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Yapi Ve and Turkiye Is

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

The idea behind Yapi ve Kredi and Turkiye Is Bankasi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.