Correlation Between Yapi Ve and Ufuk Yatirim

Can any of the company-specific risk be diversified away by investing in both Yapi Ve and Ufuk 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 Yapi Ve and Ufuk Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yapi ve Kredi and Ufuk Yatirim Yonetim, you can compare the effects of market volatilities on Yapi Ve and Ufuk 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 Yapi Ve with a short position of Ufuk Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yapi Ve and Ufuk Yatirim.

Diversification Opportunities for Yapi Ve and Ufuk Yatirim

0.57

Correlation Coefficient

Yapi Ve  Ufuk Yatirim

Very weak diversification

The 3 months correlation between Yapi and Ufuk is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi and Ufuk Yatirim Yonetim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ufuk Yatirim Yonetim and Yapi Ve 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 Yapi ve Kredi are associated (or correlated) with Ufuk Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ufuk Yatirim Yonetim has no effect on the direction of Yapi Ve i.e., Yapi Ve and Ufuk Yatirim go up and down completely randomly.

Pair Corralation between Yapi Ve and Ufuk Yatirim

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 0.93 times more return on investment than Ufuk Yatirim. However, Yapi ve Kredi is 1.08 times less risky than Ufuk Yatirim. It trades about -0.04 of its potential returns per unit of risk. Ufuk Yatirim Yonetim is currently generating about -0.05 per unit of risk. If you would invest  3,254  in Yapi ve Kredi on September 3, 2024 and sell it today you would lose (290.00) from holding Yapi ve Kredi or give up 8.91% of portfolio value over 90 days.

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

Yapi ve Kredi  vs.  Ufuk Yatirim Yonetim

Yapi ve Kredi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yapi ve Kredi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ufuk Yatirim Yonetim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ufuk Yatirim Yonetim has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Yapi Ve and Ufuk Yatirim

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

The idea behind Yapi ve Kredi and Ufuk Yatirim Yonetim 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.