Correlation Between Gedik Yatirim and Akenerji Elektrik
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Akenerji Elektrik 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 Gedik Yatirim and Akenerji Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gedik Yatirim Menkul and Akenerji Elektrik Uretim, you can compare the effects of market volatilities on Gedik Yatirim and Akenerji Elektrik 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 Gedik Yatirim with a short position of Akenerji Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Akenerji Elektrik.
Diversification Opportunities for Gedik Yatirim and Akenerji Elektrik
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gedik and Akenerji is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Akenerji Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akenerji Elektrik Uretim and Gedik Yatirim 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 Gedik Yatirim Menkul are associated (or correlated) with Akenerji Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akenerji Elektrik Uretim has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Akenerji Elektrik go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Akenerji Elektrik
Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 0.86 times more return on investment than Akenerji Elektrik. However, Gedik Yatirim Menkul is 1.17 times less risky than Akenerji Elektrik. It trades about 0.07 of its potential returns per unit of risk. Akenerji Elektrik Uretim is currently generating about -0.04 per unit of risk. If you would invest 695.00 in Gedik Yatirim Menkul on August 28, 2024 and sell it today you would earn a total of 37.00 from holding Gedik Yatirim Menkul or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Akenerji Elektrik Uretim
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Akenerji Elektrik Uretim |
Gedik Yatirim and Akenerji Elektrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Akenerji Elektrik
The main advantage of trading using opposite Gedik Yatirim and Akenerji Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Akenerji Elektrik 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 Akenerji Elektrik will offset losses from the drop in Akenerji Elektrik's long position.| Gedik Yatirim vs. Turkiye Is Bankasi | Gedik Yatirim vs. Turkiye Is Bankasi | Gedik Yatirim vs. Haci Omer Sabanci | Gedik Yatirim vs. Turkiye Halk Bankasi |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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