Correlation Between Gedik Yatirim and Trabzon Liman

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

By analyzing existing cross correlation between Gedik Yatirim Menkul and Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Gedik Yatirim and Trabzon Liman 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 Gedik Yatirim with a short position of Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Trabzon Liman.

Diversification Opportunities for Gedik Yatirim and Trabzon Liman

-0.63

Correlation Coefficient

Gedik Yatirim  Trabzon Liman

Excellent diversification

The 3 months correlation between Gedik and Trabzon is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm and Gedik Yatirim 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 Gedik Yatirim Menkul are associated (or correlated) with Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Trabzon Liman go up and down completely randomly.

Pair Corralation between Gedik Yatirim and Trabzon Liman

Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 2.05 times more return on investment than Trabzon Liman. However, Gedik Yatirim is 2.05 times more volatile than Trabzon Liman Isletmeciligi. It trades about 0.28 of its potential returns per unit of risk. Trabzon Liman Isletmeciligi is currently generating about -0.07 per unit of risk. If you would invest  758.00  in Gedik Yatirim Menkul on April 4, 2025 and sell it today you would earn a total of  844.00  from holding Gedik Yatirim Menkul or generate 111.35% return on investment over 90 days.

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

Gedik Yatirim Menkul  vs.  Trabzon Liman Isletmeciligi

Gedik Yatirim Menkul

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gedik Yatirim Menkul are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Gedik Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Trabzon Liman Isletm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trabzon Liman Isletmeciligi 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.

Pair Trading with Gedik Yatirim and Trabzon Liman

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

The idea behind Gedik Yatirim Menkul and Trabzon Liman Isletmeciligi 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.