Correlation Between Eregli Demir and Yesil Yapi

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

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

Diversification Opportunities for Eregli Demir and Yesil Yapi

0.33

Correlation Coefficient

Eregli Demir  Yesil Yapi

Weak diversification

The 3 months correlation between Eregli and Yesil is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Eregli Demir i.e., Eregli Demir and Yesil Yapi go up and down completely randomly.

Pair Corralation between Eregli Demir and Yesil Yapi

Assuming the 90 days trading horizon Eregli Demir is expected to generate 1.54 times less return on investment than Yesil Yapi. But when comparing it to its historical volatility, Eregli Demir ve is 1.98 times less risky than Yesil Yapi. It trades about 0.2 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  141.00  in Yesil Yapi Endustrisi on April 24, 2025 and sell it today you would earn a total of  51.00  from holding Yesil Yapi Endustrisi or generate 36.17% return on investment over 90 days.

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

Eregli Demir ve  vs.  Yesil Yapi Endustrisi

Eregli Demir ve

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eregli Demir ve are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Eregli Demir demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eregli Demir and Yesil Yapi

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

The idea behind Eregli Demir ve and Yesil Yapi Endustrisi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.