Correlation Between Edip Gayrimenkul and Izmir Demir

Can any of the company-specific risk be diversified away by investing in both Edip Gayrimenkul and Izmir Demir 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 Edip Gayrimenkul and Izmir Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Edip Gayrimenkul Yatirim and Izmir Demir Celik, you can compare the effects of market volatilities on Edip Gayrimenkul and Izmir Demir 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 Edip Gayrimenkul with a short position of Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edip Gayrimenkul and Izmir Demir.

Diversification Opportunities for Edip Gayrimenkul and Izmir Demir

0.6

Correlation Coefficient

Edip Gayrimenkul  Izmir Demir

Poor diversification

The 3 months correlation between Edip and Izmir is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Edip Gayrimenkul Yatirim and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik and Edip Gayrimenkul 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 Edip Gayrimenkul Yatirim are associated (or correlated) with Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Edip Gayrimenkul i.e., Edip Gayrimenkul and Izmir Demir go up and down completely randomly.

Pair Corralation between Edip Gayrimenkul and Izmir Demir

Assuming the 90 days trading horizon Edip Gayrimenkul Yatirim is expected to generate 3.82 times more return on investment than Izmir Demir. However, Edip Gayrimenkul is 3.82 times more volatile than Izmir Demir Celik. It trades about 0.18 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about 0.08 per unit of risk. If you would invest  2,050  in Edip Gayrimenkul Yatirim on April 24, 2025 and sell it today you would earn a total of  1,558  from holding Edip Gayrimenkul Yatirim or generate 76.0% return on investment over 90 days.

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

Edip Gayrimenkul Yatirim  vs.  Izmir Demir Celik

Edip Gayrimenkul Yatirim

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Edip Gayrimenkul Yatirim are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Edip Gayrimenkul unveiled solid returns over the last few months and may actually be approaching a breakup point.

Izmir Demir Celik

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Izmir Demir Celik are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Izmir Demir may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Edip Gayrimenkul and Izmir Demir

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

The idea behind Edip Gayrimenkul Yatirim and Izmir Demir Celik 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.