Correlation Between Verusaturk Girisim and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Verusaturk Girisim 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 Verusaturk Girisim and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verusaturk Girisim Sermayesi and GSD Holding AS, you can compare the effects of market volatilities on Verusaturk Girisim 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 Verusaturk Girisim with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verusaturk Girisim and GSD Holding.
Diversification Opportunities for Verusaturk Girisim and GSD Holding
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Verusaturk and GSD is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Verusaturk Girisim Sermayesi 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 Verusaturk Girisim 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 Verusaturk Girisim Sermayesi 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 Verusaturk Girisim i.e., Verusaturk Girisim and GSD Holding go up and down completely randomly.
Pair Corralation between Verusaturk Girisim and GSD Holding
Assuming the 90 days trading horizon Verusaturk Girisim is expected to generate 2.86 times less return on investment than GSD Holding. In addition to that, Verusaturk Girisim is 1.12 times more volatile than GSD Holding AS. It trades about 0.09 of its total potential returns per unit of risk. GSD Holding AS is currently generating about 0.29 per unit of volatility. If you would invest 374.00 in GSD Holding AS on September 13, 2024 and sell it today you would earn a total of 35.00 from holding GSD Holding AS or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Verusaturk Girisim Sermayesi vs. GSD Holding AS
Performance |
| Timeline |
| Verusaturk Girisim |
| GSD Holding AS |
Verusaturk Girisim and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verusaturk Girisim and GSD Holding
The main advantage of trading using opposite Verusaturk Girisim and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verusaturk Girisim 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.| Verusaturk Girisim vs. Turkish Airlines | Verusaturk Girisim vs. Bms Birlesik Metal | Verusaturk Girisim vs. MEGA METAL | Verusaturk Girisim vs. Politeknik Metal Sanayi |
| GSD Holding vs. Pamel Yenilenebilir Elektrik | GSD Holding vs. Bosch Fren Sistemleri | GSD Holding vs. Marka Yatirim Holding | GSD Holding vs. Dogus Gayrimenkul Yatirim |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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