Correlation Between Galata Wind and Kimteks Poliuretan
Can any of the company-specific risk be diversified away by investing in both Galata Wind and Kimteks Poliuretan 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 Galata Wind and Kimteks Poliuretan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galata Wind Enerji and Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Galata Wind and Kimteks Poliuretan 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 Galata Wind with a short position of Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galata Wind and Kimteks Poliuretan.
Diversification Opportunities for Galata Wind and Kimteks Poliuretan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galata and Kimteks is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Galata Wind Enerji and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan Sanayi and Galata Wind 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 Galata Wind Enerji are associated (or correlated) with Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Galata Wind i.e., Galata Wind and Kimteks Poliuretan go up and down completely randomly.
Pair Corralation between Galata Wind and Kimteks Poliuretan
Assuming the 90 days trading horizon Galata Wind Enerji is expected to generate 1.09 times more return on investment than Kimteks Poliuretan. However, Galata Wind is 1.09 times more volatile than Kimteks Poliuretan Sanayi. It trades about -0.01 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.08 per unit of risk. If you would invest 3,052 in Galata Wind Enerji on November 2, 2024 and sell it today you would lose (136.00) from holding Galata Wind Enerji or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.07% |
| Values | Daily Returns |
Galata Wind Enerji vs. Kimteks Poliuretan Sanayi
Performance |
| Timeline |
| Galata Wind Enerji |
| Kimteks Poliuretan Sanayi |
Galata Wind and Kimteks Poliuretan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galata Wind and Kimteks Poliuretan
The main advantage of trading using opposite Galata Wind and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galata Wind position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.| Galata Wind vs. Cuhadaroglu Metal Sanayi | Galata Wind vs. Koza Anadolu Metal | Galata Wind vs. MEGA METAL | Galata Wind vs. Sekerbank TAS |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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