Correlation Between Alarko Gayrimenkul and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Alarko Gayrimenkul and Galatasaray Sportif 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 Alarko Gayrimenkul and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarko Gayrimenkul Yatirim and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Alarko Gayrimenkul and Galatasaray Sportif 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 Alarko Gayrimenkul with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Gayrimenkul and Galatasaray Sportif.
Diversification Opportunities for Alarko Gayrimenkul and Galatasaray Sportif
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alarko and Galatasaray is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Gayrimenkul Yatirim and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai and Alarko Gayrimenkul 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 Alarko Gayrimenkul Yatirim are associated (or correlated) with Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Alarko Gayrimenkul i.e., Alarko Gayrimenkul and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Alarko Gayrimenkul and Galatasaray Sportif
Assuming the 90 days trading horizon Alarko Gayrimenkul Yatirim is expected to generate 1.11 times more return on investment than Galatasaray Sportif. However, Alarko Gayrimenkul is 1.11 times more volatile than Galatasaray Sportif Sinai. It trades about 0.38 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.04 per unit of risk. If you would invest 1,739 in Alarko Gayrimenkul Yatirim on September 4, 2024 and sell it today you would earn a total of 247.00 from holding Alarko Gayrimenkul Yatirim or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarko Gayrimenkul Yatirim vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Alarko Gayrimenkul |
| Galatasaray Sportif Sinai |
Alarko Gayrimenkul and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarko Gayrimenkul and Galatasaray Sportif
The main advantage of trading using opposite Alarko Gayrimenkul and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Gayrimenkul position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| Alarko Gayrimenkul vs. Galatasaray Sportif Sinai | Alarko Gayrimenkul vs. Turkish Airlines | Alarko Gayrimenkul vs. E Data Teknoloji Pazarlama | Alarko Gayrimenkul vs. Qnb Finansbank AS |
| Galatasaray Sportif vs. Koc Holding AS | Galatasaray Sportif vs. ENKA Insaat ve | Galatasaray Sportif vs. Arcelik AS | Galatasaray Sportif vs. Eregli Demir ve |
Check out your portfolio center.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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