Correlation Between Ufuk Yatirim and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Ufuk 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 Ufuk 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 Ufuk Yatirim Yonetim and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Ufuk 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 Ufuk Yatirim with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and Galatasaray Sportif.
Diversification Opportunities for Ufuk Yatirim and Galatasaray Sportif
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ufuk and Galatasaray is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim 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 Ufuk 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 Ufuk Yatirim Yonetim 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 Ufuk Yatirim i.e., Ufuk Yatirim and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Ufuk Yatirim and Galatasaray Sportif
Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to generate 0.98 times more return on investment than Galatasaray Sportif. However, Ufuk Yatirim Yonetim is 1.02 times less risky than Galatasaray Sportif. It trades about 0.11 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.04 per unit of risk. If you would invest 6,790 in Ufuk Yatirim Yonetim on September 3, 2024 and sell it today you would earn a total of 42,310 from holding Ufuk Yatirim Yonetim or generate 623.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ufuk Yatirim Yonetim vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Ufuk Yatirim Yonetim |
| Galatasaray Sportif Sinai |
Ufuk Yatirim and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ufuk Yatirim and Galatasaray Sportif
The main advantage of trading using opposite Ufuk Yatirim and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ufuk 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.| Ufuk Yatirim vs. Gentas Genel Metal | Ufuk Yatirim vs. Koza Anadolu Metal | Ufuk Yatirim vs. Turkish Airlines | Ufuk Yatirim vs. ICBC Turkey Bank |
| Galatasaray Sportif vs. Koc Holding AS | Galatasaray Sportif vs. ENKA Insaat ve | Galatasaray Sportif vs. Arcelik AS | Galatasaray Sportif vs. Eregli Demir 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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