Correlation Between Turkiye Is and Yesil Yapi
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Yesil Yapi 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 Yesil Yapi 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 Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Turkiye Is and Yesil Yapi 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 Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Yesil Yapi.
Diversification Opportunities for Turkiye Is and Yesil Yapi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Yesil is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Turkiye Is i.e., Turkiye Is and Yesil Yapi go up and down completely randomly.
Pair Corralation between Turkiye Is and Yesil Yapi
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.14 times more return on investment than Yesil Yapi. However, Turkiye Is is 1.14 times more volatile than Yesil Yapi Endustrisi. It trades about 0.13 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.06 per unit of risk. If you would invest 4,900,611 in Turkiye Is Bankasi on August 26, 2024 and sell it today you would earn a total of 50,288,889 from holding Turkiye Is Bankasi or generate 1026.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Yesil Yapi Endustrisi
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Yesil Yapi Endustrisi |
Turkiye Is and Yesil Yapi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Yesil Yapi
The main advantage of trading using opposite Turkiye Is and Yesil Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Yesil Yapi 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 Yapi will offset losses from the drop in Yesil Yapi'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 |
| Yesil Yapi vs. QNB Finans Finansal | Yesil Yapi vs. Pamel Yenilenebilir Elektrik | Yesil Yapi vs. Brisa Bridgestone Sabanci | Yesil Yapi vs. Dogus Gayrimenkul Yatirim |
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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