Correlation Between Deva Holding and Gedik Yatirim
Can any of the company-specific risk be diversified away by investing in both Deva Holding 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 Deva Holding and Gedik Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deva Holding AS and Gedik Yatirim Menkul, you can compare the effects of market volatilities on Deva Holding 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 Deva Holding with a short position of Gedik Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deva Holding and Gedik Yatirim.
Diversification Opportunities for Deva Holding and Gedik Yatirim
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deva and Gedik is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Deva Holding AS 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 Deva Holding 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 Deva Holding AS 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 Deva Holding i.e., Deva Holding and Gedik Yatirim go up and down completely randomly.
Pair Corralation between Deva Holding and Gedik Yatirim
Assuming the 90 days trading horizon Deva Holding is expected to generate 7.42 times less return on investment than Gedik Yatirim. But when comparing it to its historical volatility, Deva Holding AS is 1.27 times less risky than Gedik Yatirim. It trades about 0.01 of its potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Gedik Yatirim Menkul on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Gedik Yatirim Menkul or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deva Holding AS vs. Gedik Yatirim Menkul
Performance |
| Timeline |
| Deva Holding AS |
| Gedik Yatirim Menkul |
Deva Holding and Gedik Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deva Holding and Gedik Yatirim
The main advantage of trading using opposite Deva Holding and Gedik Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deva Holding 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.| Deva Holding vs. Turkiye Is Bankasi | Deva Holding vs. Ege Endustri ve | Deva Holding vs. Turkiye Petrol Rafinerileri | Deva Holding vs. Ford Otomotiv Sanayi |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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