Correlation Between Gedik Yatirim and Desa Deri
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Desa Deri 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 Desa Deri 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 Desa Deri Sanayi, you can compare the effects of market volatilities on Gedik Yatirim and Desa Deri 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 Desa Deri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Desa Deri.
Diversification Opportunities for Gedik Yatirim and Desa Deri
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gedik and Desa is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Desa Deri Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desa Deri Sanayi 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 Desa Deri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desa Deri Sanayi has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Desa Deri go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Desa Deri
Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 0.78 times more return on investment than Desa Deri. However, Gedik Yatirim Menkul is 1.29 times less risky than Desa Deri. It trades about 0.06 of its potential returns per unit of risk. Desa Deri Sanayi is currently generating about 0.03 per unit of risk. If you would invest 692.00 in Gedik Yatirim Menkul on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Gedik Yatirim Menkul or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Desa Deri Sanayi
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Desa Deri Sanayi |
Gedik Yatirim and Desa Deri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Desa Deri
The main advantage of trading using opposite Gedik Yatirim and Desa Deri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Desa Deri 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 Desa Deri will offset losses from the drop in Desa Deri's long position.| Gedik Yatirim vs. Desa Deri Sanayi | Gedik Yatirim vs. Tumosan Motor ve | Gedik Yatirim vs. Ihlas Gazetecilik AS | Gedik Yatirim vs. Kuyas Yatirim AS |
| Desa Deri vs. Bms Birlesik Metal | Desa Deri vs. Qnb Finansbank AS | Desa Deri vs. Borlease Otomotiv AS | Desa Deri vs. Koza Anadolu Metal |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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