Correlation Between Guler Yatirim and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Guler Yatirim and GSD 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 Guler Yatirim and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guler Yatirim Holding and GSD Holding AS, you can compare the effects of market volatilities on Guler Yatirim and GSD 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 Guler Yatirim with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guler Yatirim and GSD Holding.
Diversification Opportunities for Guler Yatirim and GSD Holding
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guler and GSD is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guler Yatirim Holding and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Guler 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 Guler Yatirim Holding are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Guler Yatirim i.e., Guler Yatirim and GSD Holding go up and down completely randomly.
Pair Corralation between Guler Yatirim and GSD Holding
Assuming the 90 days trading horizon Guler Yatirim is expected to generate 2.5 times less return on investment than GSD Holding. But when comparing it to its historical volatility, Guler Yatirim Holding is 1.14 times less risky than GSD Holding. It trades about 0.15 of its potential returns per unit of risk. GSD Holding AS is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 329.00 in GSD Holding AS on September 13, 2024 and sell it today you would earn a total of 80.00 from holding GSD Holding AS or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Guler Yatirim Holding vs. GSD Holding AS
Performance |
| Timeline |
| Guler Yatirim Holding |
| GSD Holding AS |
Guler Yatirim and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guler Yatirim and GSD Holding
The main advantage of trading using opposite Guler Yatirim and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guler Yatirim position performs unexpectedly, GSD 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 GSD Holding will offset losses from the drop in GSD Holding's long position.| Guler Yatirim vs. Borlease Otomotiv AS | Guler Yatirim vs. Akbank TAS | Guler Yatirim vs. Bms Birlesik Metal | Guler Yatirim vs. Gentas Genel Metal |
| GSD Holding vs. Pamel Yenilenebilir Elektrik | GSD Holding vs. Bosch Fren Sistemleri | GSD Holding vs. Marka Yatirim Holding | GSD Holding vs. Dogus Gayrimenkul Yatirim |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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