Correlation Between Turkiye Sise and Yesil Yatirim

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

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

Diversification Opportunities for Turkiye Sise and Yesil Yatirim

0.8

Correlation Coefficient

Turkiye Sise  Yesil Yatirim

Very poor diversification

The 3 months correlation between Turkiye and Yesil is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve 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 Turkiye Sise 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 Sise ve 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 Turkiye Sise i.e., Turkiye Sise and Yesil Yatirim go up and down completely randomly.

Pair Corralation between Turkiye Sise and Yesil Yatirim

Assuming the 90 days trading horizon Turkiye Sise is expected to generate 2.86 times less return on investment than Yesil Yatirim. But when comparing it to its historical volatility, Turkiye Sise ve is 2.5 times less risky than Yesil Yatirim. It trades about 0.3 of its potential returns per unit of risk. Yesil Yatirim Holding is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  365.00  in Yesil Yatirim Holding on February 4, 2024 and sell it today you would earn a total of  117.00  from holding Yesil Yatirim Holding or generate 32.05% return on investment over 90 days.

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

Turkiye Sise ve  vs.  Yesil Yatirim Holding

Turkiye Sise ve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Yesil Yatirim Holding

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yatirim Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Yesil Yatirim may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Turkiye Sise and Yesil Yatirim

The main advantage of trading using opposite Turkiye Sise and Yesil Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise 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 Turkiye Sise ve 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.