Correlation Between Galatasaray Sportif and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and KOC METALURJI 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 KOC METALURJI 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 KOC METALURJI, you can compare the effects of market volatilities on Galatasaray Sportif and KOC METALURJI 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 KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and KOC METALURJI.
Diversification Opportunities for Galatasaray Sportif and KOC METALURJI
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galatasaray and KOC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI 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 KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and KOC METALURJI go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and KOC METALURJI
Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the KOC METALURJI. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.44 times less risky than KOC METALURJI. The stock trades about -0.1 of its potential returns per unit of risk. The KOC METALURJI is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,623 in KOC METALURJI on October 25, 2024 and sell it today you would lose (82.00) from holding KOC METALURJI or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. KOC METALURJI
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| KOC METALURJI |
Galatasaray Sportif and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and KOC METALURJI
The main advantage of trading using opposite Galatasaray Sportif and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, KOC METALURJI 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 KOC METALURJI will offset losses from the drop in KOC METALURJI's long position.| Galatasaray Sportif vs. Turkiye Garanti Bankasi | Galatasaray Sportif vs. Turkiye Is Bankasi | Galatasaray Sportif vs. Turkiye Is Bankasi | Galatasaray Sportif vs. Akbank TAS |
| KOC METALURJI vs. SASA Polyester Sanayi | KOC METALURJI vs. Turkish Airlines | KOC METALURJI vs. Koc Holding AS | KOC METALURJI vs. Ford Otomotiv Sanayi |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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