Correlation Between Is Yatirim and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Is Yatirim 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 Is Yatirim and Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Is Yatirim 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 Is Yatirim with a short position of Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Turkiye Is.
Diversification Opportunities for Is Yatirim and Turkiye Is
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ISYAT and Turkiye is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi 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 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 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 Is Yatirim i.e., Is Yatirim and Turkiye Is go up and down completely randomly.
Pair Corralation between Is Yatirim and Turkiye Is
Assuming the 90 days trading horizon Is Yatirim is expected to generate 3.9 times less return on investment than Turkiye Is. But when comparing it to its historical volatility, Is Yatirim Ortakligi is 1.47 times less risky than Turkiye Is. It trades about 0.05 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,899,511 in Turkiye Is Bankasi on August 30, 2024 and sell it today you would earn a total of 47,894,289 from holding Turkiye Is Bankasi or generate 977.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Is Yatirim Ortakligi vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Is Yatirim Ortakligi |
| Turkiye Is Bankasi |
Is Yatirim and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Yatirim and Turkiye Is
The main advantage of trading using opposite Is Yatirim and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim 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 Is Yatirim Ortakligi 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.| Turkiye Is vs. Politeknik Metal Sanayi | Turkiye Is vs. Cuhadaroglu Metal Sanayi | Turkiye Is vs. Datagate Bilgisayar Malzemeleri | Turkiye Is vs. Mackolik Internet Hizmetleri |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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