Correlation Between GSD Holding and Yunsa Yunlu
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Yunsa Yunlu 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 Yunsa Yunlu 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 Yunsa Yunlu Sanayi, you can compare the effects of market volatilities on GSD Holding and Yunsa Yunlu 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 Yunsa Yunlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Yunsa Yunlu.
Diversification Opportunities for GSD Holding and Yunsa Yunlu
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GSD and Yunsa is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Yunsa Yunlu Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunsa Yunlu 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 Yunsa Yunlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunsa Yunlu Sanayi has no effect on the direction of GSD Holding i.e., GSD Holding and Yunsa Yunlu go up and down completely randomly.
Pair Corralation between GSD Holding and Yunsa Yunlu
Assuming the 90 days trading horizon GSD Holding AS is expected to generate 0.95 times more return on investment than Yunsa Yunlu. However, GSD Holding AS is 1.05 times less risky than Yunsa Yunlu. It trades about -0.32 of its potential returns per unit of risk. Yunsa Yunlu Sanayi is currently generating about -0.55 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. Yunsa Yunlu Sanayi
Performance |
| Timeline |
| GSD Holding AS |
| Yunsa Yunlu Sanayi |
GSD Holding and Yunsa Yunlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSD Holding and Yunsa Yunlu
The main advantage of trading using opposite GSD Holding and Yunsa Yunlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Yunsa Yunlu 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 Yunsa Yunlu will offset losses from the drop in Yunsa Yunlu'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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