Correlation Between Dow Jones and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Guler 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 Dow Jones and Guler Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Guler Yatirim Holding, you can compare the effects of market volatilities on Dow Jones and Guler 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 Dow Jones with a short position of Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Guler Yatirim.
Diversification Opportunities for Dow Jones and Guler Yatirim
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Guler is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Dow Jones i.e., Dow Jones and Guler Yatirim go up and down completely randomly.
Pair Corralation between Dow Jones and Guler Yatirim
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.8 times more return on investment than Guler Yatirim. However, Dow Jones Industrial is 1.26 times less risky than Guler Yatirim. It trades about 0.35 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.16 per unit of risk. If you would invest 4,179,460 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 291,093 from holding Dow Jones Industrial or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Guler Yatirim Holding
Performance |
| Timeline |
Dow Jones and Guler Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Guler Yatirim Holding
Pair trading matchups for Guler Yatirim
Pair Trading with Dow Jones and Guler Yatirim
The main advantage of trading using opposite Dow Jones and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Guler 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 Guler Yatirim will offset losses from the drop in Guler Yatirim's long position.| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
| Guler Yatirim vs. MEGA METAL | Guler Yatirim vs. Politeknik Metal Sanayi | Guler Yatirim vs. Sekerbank TAS | Guler Yatirim vs. Trabzonspor Sportif 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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