Correlation Between Hedef Holdings and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Hedef Holdings and GSD Holding 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 Hedef Holdings and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedef Holdings AS and GSD Holding AS, you can compare the effects of market volatilities on Hedef Holdings and GSD Holding 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 Hedef Holdings with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedef Holdings and GSD Holding.
Diversification Opportunities for Hedef Holdings and GSD Holding
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hedef and GSD is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Holdings AS and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Hedef Holdings 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 Hedef Holdings AS are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Hedef Holdings i.e., Hedef Holdings and GSD Holding go up and down completely randomly.
Pair Corralation between Hedef Holdings and GSD Holding
Assuming the 90 days trading horizon Hedef Holdings AS is expected to generate 2.46 times more return on investment than GSD Holding. However, Hedef Holdings is 2.46 times more volatile than GSD Holding AS. It trades about 0.08 of its potential returns per unit of risk. GSD Holding AS is currently generating about -0.03 per unit of risk. If you would invest 398.00 in Hedef Holdings AS on December 4, 2024 and sell it today you would earn a total of 145.00 from holding Hedef Holdings AS or generate 36.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hedef Holdings AS vs. GSD Holding AS
Performance |
| Timeline |
| Hedef Holdings AS |
| GSD Holding AS |
Hedef Holdings and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedef Holdings and GSD Holding
The main advantage of trading using opposite Hedef Holdings and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Holdings position performs unexpectedly, GSD Holding 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 GSD Holding will offset losses from the drop in GSD Holding's long position.| Hedef Holdings vs. Sodas Sodyum Sanayi | Hedef Holdings vs. Creditwest Faktoring AS | Hedef Holdings vs. Datagate Bilgisayar Malzemeleri | Hedef Holdings vs. Qnb Finansbank AS |
| GSD Holding vs. Galatasaray Sportif Sinai | GSD Holding vs. MEGA METAL | GSD Holding vs. Bms Birlesik Metal | GSD Holding vs. Cuhadaroglu Metal 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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