Correlation Between Gedik Yatirim and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Gedik Yatirim and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Dow Jones.
Diversification Opportunities for Gedik Yatirim and Dow Jones
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gedik and Dow is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Dow Jones go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Dow Jones
Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 4.37 times more return on investment than Dow Jones. However, Gedik Yatirim is 4.37 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 383.00 in Gedik Yatirim Menkul on August 31, 2024 and sell it today you would earn a total of 363.00 from holding Gedik Yatirim Menkul or generate 94.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Dow Jones Industrial
Performance |
| Timeline |
Gedik Yatirim and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Gedik Yatirim Menkul
Pair trading matchups for Gedik Yatirim
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Gedik Yatirim and Dow Jones
The main advantage of trading using opposite Gedik Yatirim and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Gedik Yatirim vs. MEGA METAL | Gedik Yatirim vs. Koza Anadolu Metal | Gedik Yatirim vs. Gentas Genel Metal | Gedik Yatirim vs. Bms Birlesik Metal |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |