Correlation Between Turkiye Halk and Lider Faktoring

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

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

Diversification Opportunities for Turkiye Halk and Lider Faktoring

0.58

Correlation Coefficient

Turkiye Halk  Lider Faktoring

Very weak diversification

The 3 months correlation between Turkiye and Lider is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Halk Bankasi and Lider Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lider Faktoring AS and Turkiye Halk 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 Turkiye Halk Bankasi are associated (or correlated) with Lider Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lider Faktoring AS has no effect on the direction of Turkiye Halk i.e., Turkiye Halk and Lider Faktoring go up and down completely randomly.

Pair Corralation between Turkiye Halk and Lider Faktoring

Assuming the 90 days trading horizon Turkiye Halk is expected to generate 1.31 times less return on investment than Lider Faktoring. But when comparing it to its historical volatility, Turkiye Halk Bankasi is 1.3 times less risky than Lider Faktoring. It trades about 0.18 of its potential returns per unit of risk. Lider Faktoring AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  314.00  in Lider Faktoring AS on April 23, 2025 and sell it today you would earn a total of  124.00  from holding Lider Faktoring AS or generate 39.49% return on investment over 90 days.

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

Turkiye Halk Bankasi  vs.  Lider Faktoring AS

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.

Lider Faktoring AS

Risk-Adjusted Performance

Good

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

Pair Trading with Turkiye Halk and Lider Faktoring

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

The idea behind Turkiye Halk Bankasi and Lider Faktoring AS 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.