Correlation Between Arcelik AS and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Arcelik AS 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 Arcelik AS and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcelik AS and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Arcelik AS 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 Arcelik AS with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcelik AS and Galatasaray Sportif.
Diversification Opportunities for Arcelik AS and Galatasaray Sportif
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arcelik and Galatasaray is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Arcelik AS 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 Arcelik AS 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 Arcelik AS 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 Arcelik AS i.e., Arcelik AS and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Arcelik AS and Galatasaray Sportif
Assuming the 90 days trading horizon Arcelik AS is expected to generate 1.71 times less return on investment than Galatasaray Sportif. But when comparing it to its historical volatility, Arcelik AS is 1.69 times less risky than Galatasaray Sportif. It trades about 0.04 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 421.00 in Galatasaray Sportif Sinai on September 3, 2024 and sell it today you would earn a total of 281.00 from holding Galatasaray Sportif Sinai or generate 66.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcelik AS vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Arcelik AS |
| Galatasaray Sportif Sinai |
Arcelik AS and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcelik AS and Galatasaray Sportif
The main advantage of trading using opposite Arcelik AS and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcelik AS 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.| Arcelik AS vs. Koc Holding AS | Arcelik AS vs. Eregli Demir ve | Arcelik AS vs. Turkiye Sise ve | Arcelik AS vs. Turkcell Iletisim Hizmetleri |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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