Correlation Between Yapi Ve and Haci Omer

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

Diversification Opportunities for Yapi Ve and Haci Omer

0.88

Correlation Coefficient

Yapi Ve  Haci Omer

Very poor diversification

The 3 months correlation between Yapi and Haci is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci 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 Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Yapi Ve i.e., Yapi Ve and Haci Omer go up and down completely randomly.

Pair Corralation between Yapi Ve and Haci Omer

Assuming the 90 days trading horizon Yapi ve Kredi is expected to under-perform the Haci Omer. In addition to that, Yapi Ve is 1.03 times more volatile than Haci Omer Sabanci. It trades about -0.11 of its total potential returns per unit of risk. Haci Omer Sabanci is currently generating about -0.07 per unit of volatility. If you would invest  9,795  in Haci Omer Sabanci on December 29, 2024 and sell it today you would lose (1,390) from holding Haci Omer Sabanci or give up 14.19% of portfolio value over 90 days.

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

Yapi ve Kredi  vs.  Haci Omer Sabanci

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.

Haci Omer Sabanci

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haci Omer Sabanci 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 Haci Omer

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

The idea behind Yapi ve Kredi and Haci Omer Sabanci 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.