Correlation Between Galatasaray Sportif and Lider Faktoring
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Lider Faktoring 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 Lider Faktoring 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 Lider Faktoring AS, you can compare the effects of market volatilities on Galatasaray Sportif and Lider Faktoring 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 Lider Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Lider Faktoring.
Diversification Opportunities for Galatasaray Sportif and Lider Faktoring
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galatasaray and Lider is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Lider Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lider Faktoring AS 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 Lider Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lider Faktoring AS has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Lider Faktoring go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Lider Faktoring
Assuming the 90 days trading horizon Galatasaray Sportif is expected to generate 2.84 times less return on investment than Lider Faktoring. But when comparing it to its historical volatility, Galatasaray Sportif Sinai is 2.69 times less risky than Lider Faktoring. It trades about 0.04 of its potential returns per unit of risk. Lider Faktoring AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Lider Faktoring AS on September 3, 2024 and sell it today you would earn a total of 162.00 from holding Lider Faktoring AS or generate 118.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Lider Faktoring AS
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Lider Faktoring AS |
Galatasaray Sportif and Lider Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Lider Faktoring
The main advantage of trading using opposite Galatasaray Sportif and Lider Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, Lider Faktoring 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 Lider Faktoring will offset losses from the drop in Lider Faktoring'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 |
| Lider Faktoring vs. Koza Anadolu Metal | Lider Faktoring vs. Sekerbank TAS | Lider Faktoring vs. Akbank TAS | Lider Faktoring vs. Gentas Genel Metal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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