Correlation Between Koza Anadolu and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Galatasaray Sportif 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 Koza Anadolu and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Koza Anadolu and Galatasaray Sportif 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 Koza Anadolu with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Galatasaray Sportif.
Diversification Opportunities for Koza Anadolu and Galatasaray Sportif
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koza and Galatasaray is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai and Koza Anadolu 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 Koza Anadolu Metal are associated (or correlated) with Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Koza Anadolu and Galatasaray Sportif
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.97 times more return on investment than Galatasaray Sportif. However, Koza Anadolu Metal is 1.04 times less risky than Galatasaray Sportif. It trades about 0.22 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.13 per unit of risk. If you would invest 6,670 in Koza Anadolu Metal on October 24, 2024 and sell it today you would earn a total of 690.00 from holding Koza Anadolu Metal or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Koza Anadolu Metal |
| Galatasaray Sportif Sinai |
Koza Anadolu and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Galatasaray Sportif
The main advantage of trading using opposite Koza Anadolu and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
| Galatasaray Sportif vs. Bms Birlesik Metal | Galatasaray Sportif vs. MEGA METAL | Galatasaray Sportif vs. Gentas Genel Metal | Galatasaray Sportif vs. Silverline Endustri ve |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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