Correlation Between Yesil Yapi and Turkiye Vakiflar

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

Diversification Opportunities for Yesil Yapi and Turkiye Vakiflar

-0.48

Correlation Coefficient

Yesil Yapi  Turkiye Vakiflar

Very good diversification

The 3 months correlation between Yesil and Turkiye is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yapi Endustrisi and Turkiye Vakiflar Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Vakiflar Bankasi 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 Turkiye Vakiflar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Vakiflar Bankasi has no effect on the direction of Yesil Yapi i.e., Yesil Yapi and Turkiye Vakiflar go up and down completely randomly.

Pair Corralation between Yesil Yapi and Turkiye Vakiflar

Assuming the 90 days trading horizon Yesil Yapi Endustrisi is expected to under-perform the Turkiye Vakiflar. In addition to that, Yesil Yapi is 1.32 times more volatile than Turkiye Vakiflar Bankasi. It trades about -0.2 of its total potential returns per unit of risk. Turkiye Vakiflar Bankasi is currently generating about 0.02 per unit of volatility. If you would invest  2,366  in Turkiye Vakiflar Bankasi on December 25, 2024 and sell it today you would earn a total of  10.00  from holding Turkiye Vakiflar Bankasi or generate 0.42% return on investment over 90 days.

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

Yesil Yapi Endustrisi  vs.  Turkiye Vakiflar Bankasi

Yesil Yapi Endustrisi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yesil Yapi Endustrisi 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.

Turkiye Vakiflar Bankasi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Vakiflar Bankasi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Turkiye Vakiflar is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Yesil Yapi and Turkiye Vakiflar

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

The idea behind Yesil Yapi Endustrisi and Turkiye Vakiflar Bankasi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.