Correlation Between Flap Kongre and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Flap Kongre 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 Flap Kongre and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flap Kongre Toplanti and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Flap Kongre 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 Flap Kongre with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flap Kongre and Galatasaray Sportif.
Diversification Opportunities for Flap Kongre and Galatasaray Sportif
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flap and Galatasaray is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Flap Kongre Toplanti 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 Flap Kongre 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 Flap Kongre Toplanti 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 Flap Kongre i.e., Flap Kongre and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Flap Kongre and Galatasaray Sportif
Assuming the 90 days trading horizon Flap Kongre Toplanti is expected to generate 1.6 times more return on investment than Galatasaray Sportif. However, Flap Kongre is 1.6 times more volatile than Galatasaray Sportif Sinai. It trades about -0.03 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.09 per unit of risk. If you would invest 1,023 in Flap Kongre Toplanti on October 26, 2024 and sell it today you would lose (90.00) from holding Flap Kongre Toplanti or give up 8.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flap Kongre Toplanti vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Flap Kongre Toplanti |
| Galatasaray Sportif Sinai |
Flap Kongre and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flap Kongre and Galatasaray Sportif
The main advantage of trading using opposite Flap Kongre and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flap Kongre 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.| Flap Kongre vs. Galatasaray Sportif Sinai | Flap Kongre vs. Qnb Finansbank AS | Flap Kongre vs. Cuhadaroglu Metal Sanayi | Flap Kongre vs. KOC METALURJI |
| Galatasaray Sportif vs. Sekerbank TAS | Galatasaray Sportif vs. KOC METALURJI | Galatasaray Sportif vs. Bms Birlesik Metal | Galatasaray Sportif 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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