Correlation Between Is Yatirim and Hedef Holdings
Can any of the company-specific risk be diversified away by investing in both Is Yatirim and Hedef Holdings 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 Is Yatirim and Hedef Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Yatirim Ortakligi and Hedef Holdings AS, you can compare the effects of market volatilities on Is Yatirim and Hedef Holdings 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 Is Yatirim with a short position of Hedef Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Hedef Holdings.
Diversification Opportunities for Is Yatirim and Hedef Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISYAT and Hedef is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS and Is Yatirim 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 Is Yatirim Ortakligi are associated (or correlated) with Hedef Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of Is Yatirim i.e., Is Yatirim and Hedef Holdings go up and down completely randomly.
Pair Corralation between Is Yatirim and Hedef Holdings
Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to generate 1.37 times more return on investment than Hedef Holdings. However, Is Yatirim is 1.37 times more volatile than Hedef Holdings AS. It trades about 0.01 of its potential returns per unit of risk. Hedef Holdings AS is currently generating about -0.17 per unit of risk. If you would invest 878.00 in Is Yatirim Ortakligi on September 5, 2024 and sell it today you would lose (3.00) from holding Is Yatirim Ortakligi or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Yatirim Ortakligi vs. Hedef Holdings AS
Performance |
| Timeline |
| Is Yatirim Ortakligi |
| Hedef Holdings AS |
Is Yatirim and Hedef Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Yatirim and Hedef Holdings
The main advantage of trading using opposite Is Yatirim and Hedef Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim position performs unexpectedly, Hedef Holdings 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 Hedef Holdings will offset losses from the drop in Hedef Holdings' long position.| Is Yatirim vs. Desa Deri Sanayi | Is Yatirim vs. Tumosan Motor ve | Is Yatirim vs. Ihlas Gazetecilik AS | Is Yatirim vs. Kuyas Yatirim AS |
| Hedef Holdings vs. Guler Yatirim Holding | Hedef Holdings vs. Yesil Yatirim Holding | Hedef Holdings vs. Hedef Girisim Sermayesi | Hedef Holdings vs. Is Yatirim Ortakligi |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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