Correlation Between GSD Holding and Dogus Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Dogus 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 GSD Holding and Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim, you can compare the effects of market volatilities on GSD Holding and Dogus 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 GSD Holding with a short position of Dogus Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Dogus Gayrimenkul.
Diversification Opportunities for GSD Holding and Dogus Gayrimenkul
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GSD and Dogus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim 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 Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of GSD Holding i.e., GSD Holding and Dogus Gayrimenkul go up and down completely randomly.
Pair Corralation between GSD Holding and Dogus Gayrimenkul
Assuming the 90 days trading horizon GSD Holding AS is expected to generate 0.64 times more return on investment than Dogus Gayrimenkul. However, GSD Holding AS is 1.56 times less risky than Dogus Gayrimenkul. It trades about -0.32 of its potential returns per unit of risk. Dogus Gayrimenkul Yatirim is currently generating about -0.32 per unit of risk. If you would invest 370.00 in GSD Holding AS on November 28, 2024 and sell it today you would lose (31.00) from holding GSD Holding AS or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSD Holding AS vs. Dogus Gayrimenkul Yatirim
Performance |
| Timeline |
| GSD Holding AS |
| Dogus Gayrimenkul Yatirim |
GSD Holding and Dogus Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Dogus Gayrimenkul
The main advantage of trading using opposite GSD Holding and Dogus Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Dogus 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 Dogus Gayrimenkul will offset losses from the drop in Dogus Gayrimenkul's long position.| GSD Holding vs. Cuhadaroglu Metal Sanayi | GSD Holding vs. MEGA METAL | GSD Holding vs. Trabzonspor Sportif Yatirim | GSD Holding vs. KOC METALURJI |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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