Correlation Between Yesil Yapi and Global Yatirim

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

By analyzing existing cross correlation between Yesil Yapi Endustrisi and Global Yatirim Holding, you can compare the effects of market volatilities on Yesil Yapi and Global 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 Yesil Yapi with a short position of Global Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yapi and Global Yatirim.

Diversification Opportunities for Yesil Yapi and Global Yatirim

0.19

Correlation Coefficient

Yesil Yapi  Global Yatirim

Average diversification

The 3 months correlation between Yesil and Global is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yapi Endustrisi and Global Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Yatirim Holding and Yesil Yapi 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 Yesil Yapi Endustrisi are associated (or correlated) with Global Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Yatirim Holding has no effect on the direction of Yesil Yapi i.e., Yesil Yapi and Global Yatirim go up and down completely randomly.

Pair Corralation between Yesil Yapi and Global Yatirim

Assuming the 90 days trading horizon Yesil Yapi Endustrisi is expected to generate 1.74 times more return on investment than Global Yatirim. However, Yesil Yapi is 1.74 times more volatile than Global Yatirim Holding. It trades about 0.13 of its potential returns per unit of risk. Global Yatirim Holding is currently generating about 0.08 per unit of risk. If you would invest  155.00  in Yesil Yapi Endustrisi on October 22, 2024 and sell it today you would earn a total of  50.00  from holding Yesil Yapi Endustrisi or generate 32.26% return on investment over 90 days.

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

Yesil Yapi Endustrisi  vs.  Global Yatirim Holding

Yesil Yapi Endustrisi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Global Yatirim Holding

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Yatirim Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Global Yatirim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Yesil Yapi and Global Yatirim

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

The idea behind Yesil Yapi Endustrisi and Global Yatirim Holding 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.