Correlation Between Margun Enerji and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Margun Enerji 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 Margun Enerji and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Margun Enerji Uretim and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Margun Enerji 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 Margun Enerji with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Margun Enerji and Galatasaray Sportif.
Diversification Opportunities for Margun Enerji and Galatasaray Sportif
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Margun and Galatasaray is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Margun Enerji Uretim 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 Margun Enerji 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 Margun Enerji Uretim 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 Margun Enerji i.e., Margun Enerji and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Margun Enerji and Galatasaray Sportif
Assuming the 90 days trading horizon Margun Enerji Uretim is expected to under-perform the Galatasaray Sportif. But the stock apears to be less risky and, when comparing its historical volatility, Margun Enerji Uretim is 1.15 times less risky than Galatasaray Sportif. The stock trades about -0.27 of its potential returns per unit of risk. The Galatasaray Sportif Sinai is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Galatasaray Sportif Sinai on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Galatasaray Sportif Sinai or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Margun Enerji Uretim vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Margun Enerji Uretim |
| Galatasaray Sportif Sinai |
Margun Enerji and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Margun Enerji and Galatasaray Sportif
The main advantage of trading using opposite Margun Enerji and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Margun Enerji 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.| Margun Enerji vs. Galatasaray Sportif Sinai | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. MEGA METAL | Margun Enerji vs. Politeknik Metal Sanayi |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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