Correlation Between Turkiye Halk and Eminis Ambalaj

Can any of the company-specific risk be diversified away by investing in both Turkiye Halk and Eminis Ambalaj 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 Turkiye Halk and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Halk Bankasi and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Turkiye Halk and Eminis Ambalaj 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 Turkiye Halk with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Halk and Eminis Ambalaj.

Diversification Opportunities for Turkiye Halk and Eminis Ambalaj

0.0

Correlation Coefficient

Turkiye Halk  Eminis Ambalaj

Pay attention - limited upside

The 3 months correlation between Turkiye and Eminis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Halk Bankasi and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and Turkiye Halk 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 Turkiye Halk Bankasi are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Turkiye Halk i.e., Turkiye Halk and Eminis Ambalaj go up and down completely randomly.

Pair Corralation between Turkiye Halk and Eminis Ambalaj

If you would invest  767.00  in Turkiye Halk Bankasi on June 23, 2024 and sell it today you would earn a total of  942.00  from holding Turkiye Halk Bankasi or generate 122.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Turkiye Halk Bankasi  vs.  Eminis Ambalaj Sanayi

Turkiye Halk Bankasi

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Turkiye Halk Bankasi 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 October 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Eminis Ambalaj Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Turkiye Halk and Eminis Ambalaj

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

The idea behind Turkiye Halk Bankasi and Eminis Ambalaj Sanayi 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.