Correlation Between Cimentas Izmir and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Cimentas Izmir 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 Cimentas Izmir and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimentas Izmir Cimento and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Cimentas Izmir 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 Cimentas Izmir with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimentas Izmir and Galatasaray Sportif.
Diversification Opportunities for Cimentas Izmir and Galatasaray Sportif
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cimentas and Galatasaray is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cimentas Izmir Cimento 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 Cimentas Izmir 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 Cimentas Izmir Cimento 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 Cimentas Izmir i.e., Cimentas Izmir and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Cimentas Izmir and Galatasaray Sportif
Assuming the 90 days trading horizon Cimentas Izmir Cimento is expected to generate 1.58 times more return on investment than Galatasaray Sportif. However, Cimentas Izmir is 1.58 times more volatile than Galatasaray Sportif Sinai. It trades about 0.1 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.0 per unit of risk. If you would invest 12,990 in Cimentas Izmir Cimento on September 12, 2024 and sell it today you would earn a total of 36,210 from holding Cimentas Izmir Cimento or generate 278.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimentas Izmir Cimento vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Cimentas Izmir Cimento |
| Galatasaray Sportif Sinai |
Cimentas Izmir and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimentas Izmir and Galatasaray Sportif
The main advantage of trading using opposite Cimentas Izmir and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimentas Izmir 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.| Cimentas Izmir vs. Galatasaray Sportif Sinai | Cimentas Izmir vs. Gentas Genel Metal | Cimentas Izmir vs. ICBC Turkey Bank | Cimentas Izmir vs. Trabzonspor Sportif Yatirim |
| Galatasaray Sportif vs. ICBC Turkey Bank | Galatasaray Sportif vs. Politeknik Metal Sanayi | Galatasaray Sportif vs. Koza Anadolu Metal | Galatasaray Sportif vs. Akbank TAS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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