Correlation Between Galatasaray Sportif and Tumosan
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Tumosan 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 Tumosan 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 Tumosan Motor ve, you can compare the effects of market volatilities on Galatasaray Sportif and Tumosan 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 Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Tumosan.
Diversification Opportunities for Galatasaray Sportif and Tumosan
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galatasaray and Tumosan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve 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 Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Tumosan go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Tumosan
Assuming the 90 days trading horizon Galatasaray Sportif is expected to generate 1.04 times less return on investment than Tumosan. In addition to that, Galatasaray Sportif is 1.06 times more volatile than Tumosan Motor ve. It trades about 0.13 of its total potential returns per unit of risk. Tumosan Motor ve is currently generating about 0.14 per unit of volatility. If you would invest 11,240 in Tumosan Motor ve on October 23, 2024 and sell it today you would earn a total of 720.00 from holding Tumosan Motor ve or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Tumosan Motor ve
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Tumosan Motor ve |
Galatasaray Sportif and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Tumosan
The main advantage of trading using opposite Galatasaray Sportif and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| Galatasaray Sportif vs. Datagate Bilgisayar Malzemeleri | Galatasaray Sportif vs. Koza Anadolu Metal | Galatasaray Sportif vs. Bms Birlesik Metal | Galatasaray Sportif vs. Akbank TAS |
| Tumosan vs. Silverline Endustri ve | Tumosan vs. Koza Anadolu Metal | Tumosan vs. KOC METALURJI | Tumosan 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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