Correlation Between Cuhadaroglu Metal and Gedik Yatirim
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Gedik Yatirim 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 Cuhadaroglu Metal and Gedik Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Gedik Yatirim Menkul, you can compare the effects of market volatilities on Cuhadaroglu Metal and Gedik Yatirim 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 Cuhadaroglu Metal with a short position of Gedik Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Gedik Yatirim.
Diversification Opportunities for Cuhadaroglu Metal and Gedik Yatirim
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cuhadaroglu and Gedik is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Gedik Yatirim go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Gedik Yatirim
Assuming the 90 days trading horizon Cuhadaroglu Metal is expected to generate 1.22 times less return on investment than Gedik Yatirim. In addition to that, Cuhadaroglu Metal is 1.42 times more volatile than Gedik Yatirim Menkul. It trades about 0.11 of its total potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about 0.19 per unit of volatility. If you would invest 704.00 in Gedik Yatirim Menkul on September 2, 2024 and sell it today you would earn a total of 42.00 from holding Gedik Yatirim Menkul or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Gedik Yatirim Menkul
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Gedik Yatirim Menkul |
Cuhadaroglu Metal and Gedik Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Gedik Yatirim
The main advantage of trading using opposite Cuhadaroglu Metal and Gedik Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Gedik Yatirim 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 Gedik Yatirim will offset losses from the drop in Gedik Yatirim's long position.| Cuhadaroglu Metal vs. Mackolik Internet Hizmetleri | Cuhadaroglu Metal vs. MEGA METAL | Cuhadaroglu Metal vs. Turkiye Kalkinma Bankasi | Cuhadaroglu Metal vs. Borlease Otomotiv AS |
| Gedik Yatirim vs. ICBC Turkey Bank | Gedik Yatirim vs. MEGA METAL | Gedik Yatirim vs. Cuhadaroglu Metal Sanayi | Gedik Yatirim vs. Politeknik Metal Sanayi |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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