Correlation Between Gedik Yatirim and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Gedik Yatirim and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Gedik Yatirim and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedik Yatirim and Kent Gida.
Diversification Opportunities for Gedik Yatirim and Kent Gida
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gedik and Kent is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gedik Yatirim Menkul and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Gedik Yatirim i.e., Gedik Yatirim and Kent Gida go up and down completely randomly.
Pair Corralation between Gedik Yatirim and Kent Gida
Assuming the 90 days trading horizon Gedik Yatirim is expected to generate 1.08 times less return on investment than Kent Gida. In addition to that, Gedik Yatirim is 1.32 times more volatile than Kent Gida Maddeleri. It trades about 0.05 of its total potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 per unit of volatility. If you would invest 23,500 in Kent Gida Maddeleri on August 28, 2024 and sell it today you would earn a total of 64,400 from holding Kent Gida Maddeleri or generate 274.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Gedik Yatirim Menkul vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Gedik Yatirim Menkul |
| Kent Gida Maddeleri |
Gedik Yatirim and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedik Yatirim and Kent Gida
The main advantage of trading using opposite Gedik Yatirim and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedik Yatirim position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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