Correlation Between Galatasaray Sportif and E Data
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and E Data 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 Galatasaray Sportif and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Galatasaray Sportif and E Data 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 Galatasaray Sportif with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and E Data.
Diversification Opportunities for Galatasaray Sportif and E Data
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galatasaray and EDATA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Galatasaray Sportif 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 Galatasaray Sportif Sinai are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and E Data go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and E Data
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to generate 0.8 times more return on investment than E Data. However, Galatasaray Sportif Sinai is 1.26 times less risky than E Data. It trades about -0.01 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.17 per unit of risk. If you would invest 709.00 in Galatasaray Sportif Sinai on August 30, 2024 and sell it today you would lose (4.00) from holding Galatasaray Sportif Sinai or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. E Data Teknoloji Pazarlama
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| E Data Teknoloji |
Galatasaray Sportif and E Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and E Data
The main advantage of trading using opposite Galatasaray Sportif and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.| Galatasaray Sportif vs. Akbank TAS | Galatasaray Sportif vs. Borlease Otomotiv AS | Galatasaray Sportif vs. Creditwest Faktoring AS | Galatasaray Sportif vs. Bms Birlesik Metal |
| E Data vs. Silverline Endustri ve | E Data vs. MEGA METAL | E Data vs. Akbank TAS | E Data vs. Mackolik Internet Hizmetleri |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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