Correlation Between Turkiye Is and Is Yatirim
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Is 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 Is and Is Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Is Yatirim Ortakligi, you can compare the effects of market volatilities on Turkiye Is and Is 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 Is with a short position of Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Is Yatirim.
Diversification Opportunities for Turkiye Is and Is Yatirim
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and ISYAT is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi and Turkiye Is 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 Is Bankasi are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of Turkiye Is i.e., Turkiye Is and Is Yatirim go up and down completely randomly.
Pair Corralation between Turkiye Is and Is Yatirim
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.56 times more return on investment than Is Yatirim. However, Turkiye Is is 1.56 times more volatile than Is Yatirim Ortakligi. It trades about 0.16 of its potential returns per unit of risk. Is Yatirim Ortakligi is currently generating about 0.04 per unit of risk. If you would invest 4,999,994 in Turkiye Is Bankasi on August 26, 2024 and sell it today you would earn a total of 50,189,506 from holding Turkiye Is Bankasi or generate 1003.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.49% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Is Yatirim Ortakligi
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Is Yatirim Ortakligi |
Turkiye Is and Is Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Is Yatirim
The main advantage of trading using opposite Turkiye Is and Is Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Is 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 Is Yatirim will offset losses from the drop in Is Yatirim's long position.| Turkiye Is vs. Qnb Finansbank AS | Turkiye Is vs. Turkiye Is Bankasi | Turkiye Is vs. Haci Omer Sabanci | Turkiye Is vs. Turkiye Vakiflar Bankasi |
| Is Yatirim vs. Turkiye Is Bankasi | Is Yatirim vs. Turkiye Is Bankasi | Is Yatirim vs. Haci Omer Sabanci | Is Yatirim vs. Turkiye Garanti Bankasi |
Check out your portfolio center.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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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