For calculating portfolio risk with value at risk model as risk operating tool

In this study, introducing VaR models and making a practice on Istanbul Stock Exchange (IMKB) are aimed. Using by Variance Covariance Model, one of the cammon Var models, total risks of two selected portfolios are calculated. Istanbul Stock Exchange?s data belonging to 2005-2006 manufacturing industry are used in this practice. In addition, in this practice the standards which Basel Committe are suggested and BDDK are accepted are generally used. These standards are the 1 day of the holding period, %99 of the confidence level and the time horizon of minimum one year. On the other hand selecting portfolio, the criteria about if a financial tool?s price-return ratio is lower than its sector?s price-return ratio, its return is much more compared to the financial tool whose price-return ratio is higher than its sector?s price-return ratio.