Correlation Between GM and Smartiks Yazilim
Can any of the company-specific risk be diversified away by investing in both GM and Smartiks Yazilim 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 Smartiks Yazilim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Smartiks Yazilim AS, you can compare the effects of market volatilities on GM and Smartiks Yazilim 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 Smartiks Yazilim. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Smartiks Yazilim.
Diversification Opportunities for GM and Smartiks Yazilim
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and Smartiks is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Smartiks Yazilim AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartiks Yazilim 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 Smartiks Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartiks Yazilim has no effect on the direction of GM i.e., GM and Smartiks Yazilim go up and down completely randomly.
Pair Corralation between GM and Smartiks Yazilim
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Smartiks Yazilim. In addition to that, GM is 1.24 times more volatile than Smartiks Yazilim AS. It trades about -0.16 of its total potential returns per unit of risk. Smartiks Yazilim AS is currently generating about -0.06 per unit of volatility. If you would invest 2,972 in Smartiks Yazilim AS on September 14, 2024 and sell it today you would lose (92.00) from holding Smartiks Yazilim AS or give up 3.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. Smartiks Yazilim AS
Performance |
| Timeline |
| General Motors |
| Smartiks Yazilim |
GM and Smartiks Yazilim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Smartiks Yazilim
The main advantage of trading using opposite GM and Smartiks Yazilim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Smartiks Yazilim 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 Smartiks Yazilim will offset losses from the drop in Smartiks Yazilim's long position.The idea behind General Motors and Smartiks Yazilim AS 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.| Smartiks Yazilim vs. Akcansa Cimento Sanayi | Smartiks Yazilim vs. MEGA METAL | Smartiks Yazilim vs. Sekerbank TAS | Smartiks Yazilim vs. Bms Birlesik Metal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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