Correlation Between Garanti Faktoring and Datagate Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Garanti Faktoring and Datagate Bilgisayar 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 Garanti Faktoring and Datagate Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garanti Faktoring AS and Datagate Bilgisayar Malzemeleri, you can compare the effects of market volatilities on Garanti Faktoring and Datagate Bilgisayar 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 Garanti Faktoring with a short position of Datagate Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garanti Faktoring and Datagate Bilgisayar.
Diversification Opportunities for Garanti Faktoring and Datagate Bilgisayar
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Garanti and Datagate is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar and Garanti Faktoring 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 Garanti Faktoring AS are associated (or correlated) with Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Garanti Faktoring i.e., Garanti Faktoring and Datagate Bilgisayar go up and down completely randomly.
Pair Corralation between Garanti Faktoring and Datagate Bilgisayar
Assuming the 90 days trading horizon Garanti Faktoring AS is expected to generate 0.61 times more return on investment than Datagate Bilgisayar. However, Garanti Faktoring AS is 1.64 times less risky than Datagate Bilgisayar. It trades about 0.1 of its potential returns per unit of risk. Datagate Bilgisayar Malzemeleri is currently generating about -0.21 per unit of risk. If you would invest 1,955 in Garanti Faktoring AS on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Garanti Faktoring AS or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garanti Faktoring AS vs. Datagate Bilgisayar Malzemeler
Performance |
| Timeline |
| Garanti Faktoring |
| Datagate Bilgisayar |
Garanti Faktoring and Datagate Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garanti Faktoring and Datagate Bilgisayar
The main advantage of trading using opposite Garanti Faktoring and Datagate Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring position performs unexpectedly, Datagate Bilgisayar 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 Datagate Bilgisayar will offset losses from the drop in Datagate Bilgisayar's long position.| Garanti Faktoring vs. Politeknik Metal Sanayi | Garanti Faktoring vs. Koza Anadolu Metal | Garanti Faktoring vs. Creditwest Faktoring AS | Garanti Faktoring vs. Bms Birlesik Metal |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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