Correlation Between GM and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both GM and Nurol Gayrimenkul 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 Nurol Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on GM and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Nurol Gayrimenkul.
Diversification Opportunities for GM and Nurol Gayrimenkul
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Nurol is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of GM i.e., GM and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between GM and Nurol Gayrimenkul
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Nurol Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 1.26 times less risky than Nurol Gayrimenkul. The stock trades about -0.08 of its potential returns per unit of risk. The Nurol Gayrimenkul Yatirim is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 735.00 in Nurol Gayrimenkul Yatirim on October 22, 2024 and sell it today you would earn a total of 73.00 from holding Nurol Gayrimenkul Yatirim or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
General Motors vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| General Motors |
| Nurol Gayrimenkul Yatirim |
GM and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Nurol Gayrimenkul
The main advantage of trading using opposite GM and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul's long position.The idea behind General Motors and Nurol Gayrimenkul Yatirim 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.| Nurol Gayrimenkul vs. Galatasaray Sportif Sinai | Nurol Gayrimenkul vs. E Data Teknoloji Pazarlama | Nurol Gayrimenkul vs. Akcansa Cimento Sanayi | Nurol Gayrimenkul vs. Akbank TAS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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