Correlation Between Yunsa Yunlu and Gedik Yatirim

Can any of the company-specific risk be diversified away by investing in both Yunsa Yunlu and Gedik 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 Yunsa Yunlu and Gedik Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yunsa Yunlu Sanayi and Gedik Yatirim Menkul, you can compare the effects of market volatilities on Yunsa Yunlu and Gedik 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 Yunsa Yunlu with a short position of Gedik Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunsa Yunlu and Gedik Yatirim.

Diversification Opportunities for Yunsa Yunlu and Gedik Yatirim

0.78

Correlation Coefficient

Yunsa Yunlu  Gedik Yatirim

Poor diversification

The 3 months correlation between Yunsa and Gedik is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yunsa Yunlu Sanayi and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Yunsa Yunlu 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 Yunsa Yunlu Sanayi are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Yunsa Yunlu i.e., Yunsa Yunlu and Gedik Yatirim go up and down completely randomly.

Pair Corralation between Yunsa Yunlu and Gedik Yatirim

Assuming the 90 days trading horizon Yunsa Yunlu Sanayi is expected to under-perform the Gedik Yatirim. In addition to that, Yunsa Yunlu is 1.12 times more volatile than Gedik Yatirim Menkul. It trades about -0.06 of its total potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about -0.01 per unit of volatility. If you would invest  841.00  in Gedik Yatirim Menkul on December 30, 2024 and sell it today you would lose (31.00) from holding Gedik Yatirim Menkul or give up 3.69% of portfolio value over 90 days.

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

Yunsa Yunlu Sanayi  vs.  Gedik Yatirim Menkul

Yunsa Yunlu Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yunsa Yunlu Sanayi 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.

Gedik Yatirim Menkul

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Yunsa Yunlu and Gedik Yatirim

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

The idea behind Yunsa Yunlu Sanayi and Gedik Yatirim Menkul 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.