Correlation Between Haci Omer and Yapi Ve

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

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

Diversification Opportunities for Haci Omer and Yapi Ve

0.75

Correlation Coefficient

Haci Omer  Yapi Ve

Poor diversification

The 3 months correlation between Haci and Yapi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Haci Omer i.e., Haci Omer and Yapi Ve go up and down completely randomly.

Pair Corralation between Haci Omer and Yapi Ve

Assuming the 90 days trading horizon Haci Omer is expected to generate 1.09 times less return on investment than Yapi Ve. But when comparing it to its historical volatility, Haci Omer Sabanci is 1.15 times less risky than Yapi Ve. It trades about 0.09 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,840  in Yapi ve Kredi on August 26, 2024 and sell it today you would earn a total of  1,080  from holding Yapi ve Kredi or generate 58.7% return on investment over 90 days.

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

Haci Omer Sabanci  vs.  Yapi ve Kredi

Haci Omer Sabanci

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Haci Omer may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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 fairly strong forward indicators, Yapi Ve is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Haci Omer and Yapi Ve

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

The idea behind Haci Omer Sabanci and Yapi ve Kredi 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.