Correlation Between Galatasaray Sportif and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Turkiye Is 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 Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Galatasaray Sportif and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Turkiye Is.
Diversification Opportunities for Galatasaray Sportif and Turkiye Is
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galatasaray and Turkiye is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Turkiye Is go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Turkiye Is
Assuming the 90 days trading horizon Galatasaray Sportif is expected to generate 3.57 times less return on investment than Turkiye Is. In addition to that, Galatasaray Sportif is 1.02 times more volatile than Turkiye Is Bankasi. It trades about 0.03 of its total potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.12 per unit of volatility. If you would invest 4,899,511 in Turkiye Is Bankasi on September 13, 2024 and sell it today you would earn a total of 48,855,489 from holding Turkiye Is Bankasi or generate 997.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Turkiye Is Bankasi |
Galatasaray Sportif and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Turkiye Is
The main advantage of trading using opposite Galatasaray Sportif and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.| Galatasaray Sportif vs. Bms Birlesik Metal | Galatasaray Sportif vs. MEGA METAL | Galatasaray Sportif vs. Cuhadaroglu Metal Sanayi | Galatasaray Sportif vs. Sodas Sodyum Sanayi |
| Turkiye Is vs. Politeknik Metal Sanayi | Turkiye Is vs. Sodas Sodyum Sanayi | Turkiye Is vs. Gentas Genel Metal | Turkiye Is vs. Galatasaray Sportif Sinai |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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