Correlation Between GM and Kartal Yenilenebilir
Can any of the company-specific risk be diversified away by investing in both GM and Kartal Yenilenebilir 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 GM and Kartal Yenilenebilir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Kartal Yenilenebilir Enerji, you can compare the effects of market volatilities on GM and Kartal Yenilenebilir 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 GM with a short position of Kartal Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Kartal Yenilenebilir.
Diversification Opportunities for GM and Kartal Yenilenebilir
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GM and Kartal is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Kartal Yenilenebilir Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartal Yenilenebilir and GM 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 General Motors are associated (or correlated) with Kartal Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartal Yenilenebilir has no effect on the direction of GM i.e., GM and Kartal Yenilenebilir go up and down completely randomly.
Pair Corralation between GM and Kartal Yenilenebilir
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Kartal Yenilenebilir. In addition to that, GM is 1.04 times more volatile than Kartal Yenilenebilir Enerji. It trades about -0.17 of its total potential returns per unit of risk. Kartal Yenilenebilir Enerji is currently generating about -0.06 per unit of volatility. If you would invest 2,958 in Kartal Yenilenebilir Enerji on September 12, 2024 and sell it today you would lose (114.00) from holding Kartal Yenilenebilir Enerji or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
General Motors vs. Kartal Yenilenebilir Enerji
Performance |
| Timeline |
| General Motors |
| Kartal Yenilenebilir |
GM and Kartal Yenilenebilir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Kartal Yenilenebilir
The main advantage of trading using opposite GM and Kartal Yenilenebilir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Kartal Yenilenebilir 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 Kartal Yenilenebilir will offset losses from the drop in Kartal Yenilenebilir's long position.The idea behind General Motors and Kartal Yenilenebilir Enerji pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kartal Yenilenebilir vs. Koza Anadolu Metal | Kartal Yenilenebilir vs. MEGA METAL | Kartal Yenilenebilir vs. Mackolik Internet Hizmetleri | Kartal Yenilenebilir vs. Turkish Airlines |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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