Correlation Between Gedik Yatirim and Deva Holding
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Deva Holding 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 Deva Holding 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 Deva Holding AS, you can compare the effects of market volatilities on Gedik Yatirim and Deva Holding 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 Deva Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Deva Holding.
Diversification Opportunities for Gedik Yatirim and Deva Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gedik and Deva is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS 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 Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Deva Holding go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Deva Holding
Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 1.27 times more return on investment than Deva Holding. However, Gedik Yatirim is 1.27 times more volatile than Deva Holding AS. It trades about 0.07 of its potential returns per unit of risk. Deva Holding AS is currently generating about 0.01 per unit of risk. If you would invest 683.00 in Gedik Yatirim Menkul on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Gedik Yatirim Menkul or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Deva Holding AS
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Deva Holding AS |
Gedik Yatirim and Deva Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Deva Holding
The main advantage of trading using opposite Gedik Yatirim and Deva Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Deva Holding 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 Deva Holding will offset losses from the drop in Deva Holding's long position.| Gedik Yatirim vs. ICBC Turkey Bank | Gedik Yatirim vs. MEGA METAL | Gedik Yatirim vs. Cuhadaroglu Metal Sanayi | Gedik Yatirim vs. Politeknik Metal Sanayi |
| Deva Holding vs. Turkiye Is Bankasi | Deva Holding vs. Ege Endustri ve | Deva Holding vs. Turkiye Petrol Rafinerileri | Deva Holding vs. Ford Otomotiv Sanayi |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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