Correlation Between Eminis Ambalaj and GSD Holding

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Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj 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 Eminis Ambalaj and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eminis Ambalaj Sanayi and GSD Holding AS, you can compare the effects of market volatilities on Eminis Ambalaj 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 Eminis Ambalaj with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and GSD Holding.

Diversification Opportunities for Eminis Ambalaj and GSD Holding

-0.74
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Eminis and GSD is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi 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 Eminis Ambalaj i.e., Eminis Ambalaj and GSD Holding go up and down completely randomly.

Pair Corralation between Eminis Ambalaj and GSD Holding

Assuming the 90 days trading horizon Eminis Ambalaj Sanayi is expected to under-perform the GSD Holding. In addition to that, Eminis Ambalaj is 2.67 times more volatile than GSD Holding AS. It trades about -0.02 of its total potential returns per unit of risk. GSD Holding AS is currently generating about 0.12 per unit of volatility. If you would invest  347.00  in GSD Holding AS on October 3, 2024 and sell it today you would earn a total of  39.00  from holding GSD Holding AS or generate 11.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Eminis Ambalaj Sanayi  vs.  GSD Holding AS

 Performance 
       Timeline  
Eminis Ambalaj Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eminis Ambalaj Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Eminis Ambalaj is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
GSD Holding AS 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in GSD Holding AS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, GSD Holding may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Eminis Ambalaj and GSD Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eminis Ambalaj and GSD Holding

The main advantage of trading using opposite Eminis Ambalaj and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj 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.
The idea behind Eminis Ambalaj Sanayi and GSD Holding AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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