Correlation Between Unlu Yatirim and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Unlu 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 Unlu 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 Unlu Yatirim Holding and GSD Holding AS, you can compare the effects of market volatilities on Unlu 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 Unlu Yatirim with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlu Yatirim and GSD Holding.
Diversification Opportunities for Unlu Yatirim and GSD Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unlu and GSD is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding 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 Unlu 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 Unlu Yatirim Holding 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 Unlu Yatirim i.e., Unlu Yatirim and GSD Holding go up and down completely randomly.
Pair Corralation between Unlu Yatirim and GSD Holding
Assuming the 90 days trading horizon Unlu Yatirim Holding is expected to generate 1.26 times more return on investment than GSD Holding. However, Unlu Yatirim is 1.26 times more volatile than GSD Holding AS. It trades about 0.38 of its potential returns per unit of risk. GSD Holding AS is currently generating about 0.29 per unit of risk. If you would invest 1,339 in Unlu Yatirim Holding on September 13, 2024 and sell it today you would earn a total of 211.00 from holding Unlu Yatirim Holding or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unlu Yatirim Holding vs. GSD Holding AS
Performance |
| Timeline |
| Unlu Yatirim Holding |
| GSD Holding AS |
Unlu Yatirim and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unlu Yatirim and GSD Holding
The main advantage of trading using opposite Unlu Yatirim and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unlu 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.| Unlu Yatirim vs. Verusa Holding AS | Unlu Yatirim vs. Hedef Holdings AS | Unlu Yatirim vs. GSD Holding AS | Unlu Yatirim vs. Guler Yatirim Holding |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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