Correlation Between Kuyas Yatirim and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Kuyas Yatirim 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 Kuyas Yatirim and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuyas Yatirim AS and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Kuyas Yatirim 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 Kuyas Yatirim with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Galatasaray Sportif.
Diversification Opportunities for Kuyas Yatirim and Galatasaray Sportif
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kuyas and Galatasaray is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS 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 Kuyas 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 Kuyas Yatirim AS 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 Kuyas Yatirim i.e., Kuyas Yatirim and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Kuyas Yatirim and Galatasaray Sportif
Assuming the 90 days trading horizon Kuyas Yatirim AS is expected to generate 1.06 times more return on investment than Galatasaray Sportif. However, Kuyas Yatirim is 1.06 times more volatile than Galatasaray Sportif Sinai. It trades about 0.07 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.05 per unit of risk. If you would invest 3,950 in Kuyas Yatirim AS on August 28, 2024 and sell it today you would earn a total of 3,425 from holding Kuyas Yatirim AS or generate 86.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuyas Yatirim AS vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Kuyas Yatirim AS |
| Galatasaray Sportif Sinai |
Kuyas Yatirim and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuyas Yatirim and Galatasaray Sportif
The main advantage of trading using opposite Kuyas Yatirim and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuyas Yatirim 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.| Kuyas Yatirim vs. Brisa Bridgestone Sabanci | Kuyas Yatirim vs. IZDEMIR Enerji Elektrik | Kuyas Yatirim vs. Margun Enerji Uretim | Kuyas Yatirim vs. Kent Gida Maddeleri |
| Galatasaray Sportif vs. Yibitas Yozgat Isci | Galatasaray Sportif vs. Ege Endustri ve | Galatasaray Sportif vs. Borusan Yatirim ve | Galatasaray Sportif vs. Turkiye Petrol Rafinerileri |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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