Correlation Between Yesil Yapi and Yesil Yatirim

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

Diversification Opportunities for Yesil Yapi and Yesil Yatirim

0.99

Correlation Coefficient

Yesil Yapi  Yesil Yatirim

No risk reduction

The 3 months correlation between Yesil and Yesil is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yapi Endustrisi and Yesil Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil 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 Yesil Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yatirim Holding has no effect on the direction of Yesil Yapi i.e., Yesil Yapi and Yesil Yatirim go up and down completely randomly.

Pair Corralation between Yesil Yapi and Yesil Yatirim

Assuming the 90 days trading horizon Yesil Yapi Endustrisi is expected to generate 1.08 times more return on investment than Yesil Yatirim. However, Yesil Yapi is 1.08 times more volatile than Yesil Yatirim Holding. It trades about 0.08 of its potential returns per unit of risk. Yesil Yatirim Holding is currently generating about 0.01 per unit of risk. If you would invest  142.00  in Yesil Yapi Endustrisi on October 7, 2024 and sell it today you would earn a total of  97.00  from holding Yesil Yapi Endustrisi or generate 68.31% return on investment over 90 days.

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

Yesil Yapi Endustrisi  vs.  Yesil Yatirim Holding

Yesil Yapi Endustrisi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 14 (%) 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.

Yesil Yatirim Holding

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yesil Yapi and Yesil Yatirim

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

The idea behind Yesil Yapi Endustrisi and Yesil 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.