Correlation Between Is Yatirim and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Is Yatirim 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 Is Yatirim and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Yatirim Ortakligi and GSD Holding AS, you can compare the effects of market volatilities on Is Yatirim 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 Is Yatirim with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and GSD Holding.
Diversification Opportunities for Is Yatirim and GSD Holding
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ISYAT and GSD is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi 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 Is Yatirim 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 Is Yatirim Ortakligi 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 Is Yatirim i.e., Is Yatirim and GSD Holding go up and down completely randomly.
Pair Corralation between Is Yatirim and GSD Holding
Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to generate 1.13 times more return on investment than GSD Holding. However, Is Yatirim is 1.13 times more volatile than GSD Holding AS. It trades about -0.21 of its potential returns per unit of risk. GSD Holding AS is currently generating about -0.32 per unit of risk. If you would invest 831.00 in Is Yatirim Ortakligi on November 28, 2024 and sell it today you would lose (51.00) from holding Is Yatirim Ortakligi or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Yatirim Ortakligi vs. GSD Holding AS
Performance |
| Timeline |
| Is Yatirim Ortakligi |
| GSD Holding AS |
Is Yatirim and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Yatirim and GSD Holding
The main advantage of trading using opposite Is Yatirim and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim 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.| Is Yatirim vs. E Data Teknoloji Pazarlama | Is Yatirim vs. KOC METALURJI | Is Yatirim vs. Gentas Genel Metal | Is Yatirim vs. Koza Anadolu Metal |
| GSD Holding vs. Cuhadaroglu Metal Sanayi | GSD Holding vs. MEGA METAL | GSD Holding vs. Trabzonspor Sportif Yatirim | GSD Holding vs. KOC METALURJI |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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