Correlation Between Gelecek Varlik and Turkiye Halk

Can any of the company-specific risk be diversified away by investing in both Gelecek Varlik and Turkiye Halk 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 Gelecek Varlik and Turkiye Halk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gelecek Varlik Yonetimi and Turkiye Halk Bankasi, you can compare the effects of market volatilities on Gelecek Varlik and Turkiye Halk 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 Gelecek Varlik with a short position of Turkiye Halk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelecek Varlik and Turkiye Halk.

Diversification Opportunities for Gelecek Varlik and Turkiye Halk

0.33

Correlation Coefficient

Gelecek Varlik  Turkiye Halk

Weak diversification

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

Pair Corralation between Gelecek Varlik and Turkiye Halk

Assuming the 90 days trading horizon Gelecek Varlik is expected to generate 4.67 times less return on investment than Turkiye Halk. In addition to that, Gelecek Varlik is 1.15 times more volatile than Turkiye Halk Bankasi. It trades about 0.03 of its total potential returns per unit of risk. Turkiye Halk Bankasi is currently generating about 0.18 per unit of volatility. If you would invest  2,060  in Turkiye Halk Bankasi on April 24, 2025 and sell it today you would earn a total of  612.00  from holding Turkiye Halk Bankasi or generate 29.71% return on investment over 90 days.

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

Gelecek Varlik Yonetimi  vs.  Turkiye Halk Bankasi

Gelecek Varlik Yonetimi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gelecek Varlik Yonetimi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Gelecek Varlik may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Turkiye Halk Bankasi

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Halk Bankasi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Halk demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gelecek Varlik and Turkiye Halk

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

The idea behind Gelecek Varlik Yonetimi and Turkiye Halk Bankasi 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.