Correlation Between Datagate Bilgisayar and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar and GSD Holding 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 Datagate Bilgisayar and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datagate Bilgisayar Malzemeleri and GSD Holding AS, you can compare the effects of market volatilities on Datagate Bilgisayar and GSD Holding 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 Datagate Bilgisayar with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and GSD Holding.
Diversification Opportunities for Datagate Bilgisayar and GSD Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Datagate and GSD is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Datagate Bilgisayar i.e., Datagate Bilgisayar and GSD Holding go up and down completely randomly.
Pair Corralation between Datagate Bilgisayar and GSD Holding
Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.69 times more return on investment than GSD Holding. However, Datagate Bilgisayar is 1.69 times more volatile than GSD Holding AS. It trades about 0.05 of its potential returns per unit of risk. GSD Holding AS is currently generating about -0.02 per unit of risk. If you would invest 2,552 in Datagate Bilgisayar Malzemeleri on September 12, 2024 and sell it today you would earn a total of 1,488 from holding Datagate Bilgisayar Malzemeleri or generate 58.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Datagate Bilgisayar Malzemeler vs. GSD Holding AS
Performance |
| Timeline |
| Datagate Bilgisayar |
| GSD Holding AS |
Datagate Bilgisayar and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datagate Bilgisayar and GSD Holding
The main advantage of trading using opposite Datagate Bilgisayar and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagate Bilgisayar position performs unexpectedly, GSD Holding 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 GSD Holding will offset losses from the drop in GSD Holding's long position.| Datagate Bilgisayar vs. Sodas Sodyum Sanayi | Datagate Bilgisayar vs. Koza Anadolu Metal | Datagate Bilgisayar vs. Akcansa Cimento Sanayi | Datagate Bilgisayar vs. Creditwest Faktoring AS |
| GSD Holding vs. Pamel Yenilenebilir Elektrik | GSD Holding vs. Bosch Fren Sistemleri | GSD Holding vs. Marka Yatirim Holding | GSD Holding vs. Dogus Gayrimenkul Yatirim |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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