Correlation Between Haci Omer and Turkiye Is

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

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

Diversification Opportunities for Haci Omer and Turkiye Is

0.58

Correlation Coefficient

Haci Omer  Turkiye Is

Very weak diversification

The 3 months correlation between Haci and Turkiye is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Haci Omer i.e., Haci Omer and Turkiye Is go up and down completely randomly.

Pair Corralation between Haci Omer and Turkiye Is

Assuming the 90 days trading horizon Haci Omer Sabanci is expected to under-perform the Turkiye Is. But the stock apears to be less risky and, when comparing its historical volatility, Haci Omer Sabanci is 2.28 times less risky than Turkiye Is. The stock trades about -0.34 of its potential returns per unit of risk. The Turkiye Is Bankasi is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  59,500,000  in Turkiye Is Bankasi on March 22, 2024 and sell it today you would earn a total of  18,499,800  from holding Turkiye Is Bankasi or generate 31.09% return on investment over 90 days.

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

Haci Omer Sabanci  vs.  Turkiye Is Bankasi

Haci Omer Sabanci

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Haci Omer demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turkiye Is Bankasi

Risk-Adjusted Performance

15 of 100

Good

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

Pair Trading with Haci Omer and Turkiye Is

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

The idea behind Haci Omer Sabanci and Turkiye Is 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.