Hedging method as value at risk: a research on the iİstanbul Stock Market

Risk increasing due to the devoloping financial system are not be able to removed. This risks can only be minimized. Thus, techniques enabling these risks to be measured are improved, one of which is the method of Value at Risk (VaR). The aim of this study is to measure the risks of the stocks belonging to the insurance companies, financial leasing and factoring companies, holdings and investment institutions, banks and private financial foundations which make up the subbranches of the fiscal sector acting in the Borsa İstanbul and to determine the stocks with the highest risk among them. In the study, the varyans- coverriance method was used as VaR method. With different seven portfolios, the VaR values of the stocks with highest risk in the fiscal sector belong to banks, private financial foundations and insurance companies; on the other hand, the stocks with lowest risk belong to financial leasing and factoring companies, holdings and invesment companies. Key Words: Value at Risk, Standart Deviation, Volatility, Risk,