Correlation Between GSD Holding and Desa Deri
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Desa Deri 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 GSD Holding and Desa Deri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSD Holding AS and Desa Deri Sanayi, you can compare the effects of market volatilities on GSD Holding and Desa Deri 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 GSD Holding with a short position of Desa Deri. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Desa Deri.
Diversification Opportunities for GSD Holding and Desa Deri
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GSD and Desa is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Desa Deri Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desa Deri Sanayi and GSD Holding 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 GSD Holding AS are associated (or correlated) with Desa Deri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desa Deri Sanayi has no effect on the direction of GSD Holding i.e., GSD Holding and Desa Deri go up and down completely randomly.
Pair Corralation between GSD Holding and Desa Deri
Assuming the 90 days trading horizon GSD Holding is expected to generate 10.73 times less return on investment than Desa Deri. But when comparing it to its historical volatility, GSD Holding AS is 5.73 times less risky than Desa Deri. It trades about 0.02 of its potential returns per unit of risk. Desa Deri Sanayi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,334 in Desa Deri Sanayi on September 3, 2024 and sell it today you would earn a total of 758.00 from holding Desa Deri Sanayi or generate 56.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSD Holding AS vs. Desa Deri Sanayi
Performance |
| Timeline |
| GSD Holding AS |
| Desa Deri Sanayi |
GSD Holding and Desa Deri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Desa Deri
The main advantage of trading using opposite GSD Holding and Desa Deri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Desa Deri 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 Desa Deri will offset losses from the drop in Desa Deri's long position.| GSD Holding vs. Desa Deri Sanayi | GSD Holding vs. Tumosan Motor ve | GSD Holding vs. Ihlas Gazetecilik AS | GSD Holding vs. Kuyas Yatirim AS |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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