Correlation Between Galatasaray Sportif and Is Yatirim
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Is Yatirim 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 Is Yatirim 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 Is Yatirim Ortakligi, you can compare the effects of market volatilities on Galatasaray Sportif and Is Yatirim 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 Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Is Yatirim.
Diversification Opportunities for Galatasaray Sportif and Is Yatirim
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galatasaray and ISYAT is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi 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 Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Is Yatirim go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Is Yatirim
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the Is Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.09 times less risky than Is Yatirim. The stock trades about -0.05 of its potential returns per unit of risk. The Is Yatirim Ortakligi is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Is Yatirim Ortakligi on September 3, 2024 and sell it today you would lose (123.00) from holding Is Yatirim Ortakligi or give up 12.49% 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. Is Yatirim Ortakligi
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Is Yatirim Ortakligi |
Galatasaray Sportif and Is Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Is Yatirim
The main advantage of trading using opposite Galatasaray Sportif and Is Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, Is Yatirim 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 Is Yatirim will offset losses from the drop in Is Yatirim's long position.| Galatasaray Sportif vs. Koc Holding AS | Galatasaray Sportif vs. ENKA Insaat ve | Galatasaray Sportif vs. Arcelik AS | Galatasaray Sportif vs. Eregli Demir ve |
| Is Yatirim vs. Qnb Finansbank AS | Is Yatirim vs. Silverline Endustri ve | Is Yatirim vs. Akcansa Cimento Sanayi | Is Yatirim vs. Akbank TAS |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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