Correlation Between Gubre Fabrikalari and Trabzon Liman
Can any of the company-specific risk be diversified away by investing in both Gubre Fabrikalari and Trabzon Liman 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 Gubre Fabrikalari and Trabzon Liman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gubre Fabrikalari TAS and Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Gubre Fabrikalari and Trabzon Liman 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 Gubre Fabrikalari with a short position of Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gubre Fabrikalari and Trabzon Liman.
Diversification Opportunities for Gubre Fabrikalari and Trabzon Liman
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gubre and Trabzon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gubre Fabrikalari TAS and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm and Gubre Fabrikalari 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 Gubre Fabrikalari TAS are associated (or correlated) with Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Gubre Fabrikalari i.e., Gubre Fabrikalari and Trabzon Liman go up and down completely randomly.
Pair Corralation between Gubre Fabrikalari and Trabzon Liman
Assuming the 90 days trading horizon Gubre Fabrikalari TAS is expected to generate 0.73 times more return on investment than Trabzon Liman. However, Gubre Fabrikalari TAS is 1.37 times less risky than Trabzon Liman. It trades about 0.37 of its potential returns per unit of risk. Trabzon Liman Isletmeciligi is currently generating about 0.11 per unit of risk. If you would invest 20,490 in Gubre Fabrikalari TAS on September 2, 2024 and sell it today you would earn a total of 4,410 from holding Gubre Fabrikalari TAS or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gubre Fabrikalari TAS vs. Trabzon Liman Isletmeciligi
Performance |
| Timeline |
| Gubre Fabrikalari TAS |
| Trabzon Liman Isletm |
Gubre Fabrikalari and Trabzon Liman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gubre Fabrikalari and Trabzon Liman
The main advantage of trading using opposite Gubre Fabrikalari and Trabzon Liman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gubre Fabrikalari position performs unexpectedly, Trabzon Liman 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 Trabzon Liman will offset losses from the drop in Trabzon Liman's long position.| Gubre Fabrikalari vs. Trend Gayrimenkul Yatirim | Gubre Fabrikalari vs. Trabzon Liman Isletmeciligi | Gubre Fabrikalari vs. Halk Gayrimenkul Yatirim | Gubre Fabrikalari vs. Inveo Yatirim Holding |
| Trabzon Liman vs. Cuhadaroglu Metal Sanayi | Trabzon Liman vs. Mackolik Internet Hizmetleri | Trabzon Liman vs. Bms Birlesik Metal | Trabzon Liman 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |