Correlation Between Turkiye Is and Haci Omer

Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Haci Omer 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 Haci Omer 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 Haci Omer Sabanci, you can compare the effects of market volatilities on Turkiye Is and Haci Omer 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 Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Haci Omer.

Diversification Opportunities for Turkiye Is and Haci Omer

0.96

Correlation Coefficient

Turkiye Is  Haci Omer

Almost no diversification

The 3 months correlation between Turkiye and Haci is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci 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 Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Turkiye Is i.e., Turkiye Is and Haci Omer go up and down completely randomly.

Pair Corralation between Turkiye Is and Haci Omer

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.27 times more return on investment than Haci Omer. However, Turkiye Is is 1.27 times more volatile than Haci Omer Sabanci. It trades about 0.34 of its potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.35 per unit of risk. If you would invest  1,353  in Turkiye Is Bankasi on February 28, 2024 and sell it today you would earn a total of  214.00  from holding Turkiye Is Bankasi or generate 15.82% return on investment over 90 days.

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

Turkiye Is Bankasi  vs.  Haci Omer Sabanci

Turkiye Is Bankasi

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Is Bankasi are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Turkiye Is demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Haci Omer Sabanci

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Haci Omer demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Is and Haci Omer

The main advantage of trading using opposite Turkiye Is and Haci Omer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Haci Omer 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 Haci Omer will offset losses from the drop in Haci Omer's long position.

The idea behind Turkiye Is Bankasi and Haci Omer Sabanci 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.