Correlation Between Yesil Yapi and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Yesil Yapi 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 Yesil Yapi and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yesil Yapi Endustrisi and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Yesil Yapi 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 Yesil Yapi with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yapi and Galatasaray Sportif.
Diversification Opportunities for Yesil Yapi and Galatasaray Sportif
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yesil and Galatasaray is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yapi Endustrisi 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 Yesil Yapi 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 Yesil Yapi Endustrisi 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 Yesil Yapi i.e., Yesil Yapi and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Yesil Yapi and Galatasaray Sportif
Assuming the 90 days trading horizon Yesil Yapi Endustrisi is expected to generate 0.85 times more return on investment than Galatasaray Sportif. However, Yesil Yapi Endustrisi is 1.18 times less risky than Galatasaray Sportif. It trades about 0.07 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 238.00 in Yesil Yapi Endustrisi on September 3, 2024 and sell it today you would earn a total of 348.00 from holding Yesil Yapi Endustrisi or generate 146.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yesil Yapi Endustrisi vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Yesil Yapi Endustrisi |
| Galatasaray Sportif Sinai |
Yesil Yapi and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yesil Yapi and Galatasaray Sportif
The main advantage of trading using opposite Yesil Yapi and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yesil Yapi 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.| Yesil Yapi vs. Bms Birlesik Metal | Yesil Yapi vs. Koza Anadolu Metal | Yesil Yapi vs. Gentas Genel Metal | Yesil Yapi vs. E Data Teknoloji Pazarlama |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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