Correlation Between GSD Holding and Ege Gubre
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Ege Gubre 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 Ege Gubre 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 Ege Gubre Sanayi, you can compare the effects of market volatilities on GSD Holding and Ege Gubre 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 Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Ege Gubre.
Diversification Opportunities for GSD Holding and Ege Gubre
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GSD and Ege is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre 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 Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of GSD Holding i.e., GSD Holding and Ege Gubre go up and down completely randomly.
Pair Corralation between GSD Holding and Ege Gubre
Assuming the 90 days trading horizon GSD Holding AS is expected to generate 0.63 times more return on investment than Ege Gubre. However, GSD Holding AS is 1.59 times less risky than Ege Gubre. It trades about 0.33 of its potential returns per unit of risk. Ege Gubre Sanayi is currently generating about 0.01 per unit of risk. If you would invest 352.00 in GSD Holding AS on August 30, 2024 and sell it today you would earn a total of 39.00 from holding GSD Holding AS or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GSD Holding AS vs. Ege Gubre Sanayi
Performance |
| Timeline |
| GSD Holding AS |
| Ege Gubre Sanayi |
GSD Holding and Ege Gubre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Ege Gubre
The main advantage of trading using opposite GSD Holding and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Ege Gubre 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 Ege Gubre will offset losses from the drop in Ege Gubre's long position.| GSD Holding vs. Bms Birlesik Metal | GSD Holding vs. Turkiye Kalkinma Bankasi | GSD Holding vs. Koza Anadolu Metal | GSD Holding vs. Gentas Genel Metal |
| Ege Gubre vs. Creditwest Faktoring AS | Ege Gubre vs. Politeknik Metal Sanayi | Ege Gubre vs. Akcansa Cimento Sanayi | Ege Gubre vs. MEGA 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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