Correlation Between Yapi Ve and Pergamon Status

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

Diversification Opportunities for Yapi Ve and Pergamon Status

-0.47

Correlation Coefficient

Yapi Ve  Pergamon Status

Very good diversification

The 3 months correlation between Yapi and Pergamon is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis 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 Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Yapi Ve i.e., Yapi Ve and Pergamon Status go up and down completely randomly.

Pair Corralation between Yapi Ve and Pergamon Status

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 0.77 times more return on investment than Pergamon Status. However, Yapi ve Kredi is 1.3 times less risky than Pergamon Status. It trades about 0.18 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about -0.11 per unit of risk. If you would invest  2,412  in Yapi ve Kredi on October 20, 2024 and sell it today you would earn a total of  758.00  from holding Yapi ve Kredi or generate 31.43% return on investment over 90 days.

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

Yapi ve Kredi  vs.  Pergamon Status Dis

Yapi ve Kredi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pergamon Status Dis 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Yapi Ve and Pergamon Status

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

The idea behind Yapi ve Kredi and Pergamon Status Dis 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.