Correlation Between Gedik Yatirim and Indeks Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Indeks 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 Indeks 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 Indeks Bilgisayar Sistemleri, you can compare the effects of market volatilities on Gedik Yatirim and Indeks 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 Indeks Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Indeks Bilgisayar.
Diversification Opportunities for Gedik Yatirim and Indeks Bilgisayar
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gedik and Indeks is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Indeks Bilgisayar Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indeks Bilgisayar 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 Indeks Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indeks Bilgisayar has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Indeks Bilgisayar go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Indeks Bilgisayar
Assuming the 90 days trading horizon Gedik Yatirim is expected to generate 1.25 times less return on investment than Indeks Bilgisayar. But when comparing it to its historical volatility, Gedik Yatirim Menkul is 1.82 times less risky than Indeks Bilgisayar. It trades about 0.05 of its potential returns per unit of risk. Indeks Bilgisayar Sistemleri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 596.00 in Indeks Bilgisayar Sistemleri on September 2, 2024 and sell it today you would earn a total of 86.00 from holding Indeks Bilgisayar Sistemleri or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Indeks Bilgisayar Sistemleri
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Indeks Bilgisayar |
Gedik Yatirim and Indeks Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Indeks Bilgisayar
The main advantage of trading using opposite Gedik Yatirim and Indeks Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Indeks 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 Indeks Bilgisayar will offset losses from the drop in Indeks Bilgisayar'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 |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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