Correlation Between Yapi Ve and Koc Holding

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

Diversification Opportunities for Yapi Ve and Koc Holding

0.55

Correlation Coefficient

Yapi Ve  Koc Holding

Very weak diversification

The 3 months correlation between Yapi and Koc is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS 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 Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Yapi Ve i.e., Yapi Ve and Koc Holding go up and down completely randomly.

Pair Corralation between Yapi Ve and Koc Holding

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Koc Holding. In addition to that, Yapi Ve is 1.13 times more volatile than Koc Holding AS. It trades about -0.1 of its total potential returns per unit of risk. Koc Holding AS is currently generating about -0.05 per unit of volatility. If you would invest  18,350  in Koc Holding AS on December 27, 2024 and sell it today you would lose (1,800) from holding Koc Holding AS or give up 9.81% of portfolio value over 90 days.

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

Yapi ve Kredi  vs.  Koc Holding AS

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.

Koc Holding AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koc Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Yapi Ve and Koc Holding

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

The idea behind Yapi ve Kredi and Koc Holding AS 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 Managers module to screen money managers from public funds and ETFs managed around the world.