Correlation Between Turkiye Is and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Turkiye Is 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 Turkiye Is and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and GSD Holding AS, you can compare the effects of market volatilities on Turkiye Is 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 Turkiye Is with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and GSD Holding.
Diversification Opportunities for Turkiye Is and GSD Holding
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turkiye and GSD is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi 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 Turkiye Is 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 Turkiye Is Bankasi 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 Turkiye Is i.e., Turkiye Is and GSD Holding go up and down completely randomly.
Pair Corralation between Turkiye Is and GSD Holding
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.8 times more return on investment than GSD Holding. However, Turkiye Is is 1.8 times more volatile than GSD Holding AS. It trades about 0.13 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 4,689,432 in Turkiye Is Bankasi on November 19, 2024 and sell it today you would earn a total of 46,806,868 from holding Turkiye Is Bankasi or generate 998.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. GSD Holding AS
Performance |
| Timeline |
| Turkiye Is Bankasi |
| GSD Holding AS |
Turkiye Is and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and GSD Holding
The main advantage of trading using opposite Turkiye Is and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is 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.| Turkiye Is vs. Sodas Sodyum Sanayi | Turkiye Is vs. Sekerbank TAS | Turkiye Is vs. Creditwest Faktoring AS | Turkiye Is vs. Turkiye Kalkinma Bankasi |
| GSD Holding vs. CEO Event Medya | GSD Holding vs. Qnb Finansbank AS | GSD Holding vs. Koza Anadolu Metal | GSD Holding vs. Turkiye Kalkinma Bankasi |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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