Correlation Between GSD Holding and Euro Kapital
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Euro Kapital 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 Euro Kapital 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 Euro Kapital Yatirim, you can compare the effects of market volatilities on GSD Holding and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Euro Kapital.
Diversification Opportunities for GSD Holding and Euro Kapital
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GSD and Euro is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of GSD Holding i.e., GSD Holding and Euro Kapital go up and down completely randomly.
Pair Corralation between GSD Holding and Euro Kapital
Assuming the 90 days trading horizon GSD Holding AS is expected to under-perform the Euro Kapital. But the stock apears to be less risky and, when comparing its historical volatility, GSD Holding AS is 2.37 times less risky than Euro Kapital. The stock trades about -0.03 of its potential returns per unit of risk. The Euro Kapital Yatirim is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Euro Kapital Yatirim on November 28, 2024 and sell it today you would lose (152.00) from holding Euro Kapital Yatirim or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSD Holding AS vs. Euro Kapital Yatirim
Performance |
| Timeline |
| GSD Holding AS |
| Euro Kapital Yatirim |
GSD Holding and Euro Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Euro Kapital
The main advantage of trading using opposite GSD Holding and Euro Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Euro Kapital 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 Euro Kapital will offset losses from the drop in Euro Kapital'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 |
| Euro Kapital vs. Sodas Sodyum Sanayi | Euro Kapital vs. Silverline Endustri ve | Euro Kapital vs. Akbank TAS | Euro Kapital vs. Turkiye Kalkinma Bankasi |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets |