Correlation Between Gedik Yatirim and Hitit Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Hitit 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 Gedik Yatirim and Hitit Bilgisayar 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 Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on Gedik Yatirim and Hitit 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 Gedik Yatirim with a short position of Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Hitit Bilgisayar.
Diversification Opportunities for Gedik Yatirim and Hitit Bilgisayar
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gedik and Hitit is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz 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 Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Hitit Bilgisayar go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Hitit Bilgisayar
Assuming the 90 days trading horizon Gedik Yatirim Menkul is expected to generate 0.71 times more return on investment than Hitit Bilgisayar. However, Gedik Yatirim Menkul is 1.4 times less risky than Hitit Bilgisayar. It trades about 0.05 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about 0.03 per unit of risk. If you would invest 625.00 in Gedik Yatirim Menkul on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Gedik Yatirim Menkul or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Hitit Bilgisayar Hizmetleri
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Hitit Bilgisayar Hiz |
Gedik Yatirim and Hitit Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Hitit Bilgisayar
The main advantage of trading using opposite Gedik Yatirim and Hitit Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Hitit 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 Hitit Bilgisayar will offset losses from the drop in Hitit Bilgisayar'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 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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