Correlation Between Global Yatirim and E Data

Can any of the company-specific risk be diversified away by investing in both Global Yatirim and E Data 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 Global Yatirim and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Yatirim Holding and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Global Yatirim and E Data 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 Global Yatirim with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Yatirim and E Data.

Diversification Opportunities for Global Yatirim and E Data

-0.11

Correlation Coefficient

Global Yatirim  E Data

Good diversification

The 3 months correlation between Global and EDATA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Yatirim Holding and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Global 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 Global Yatirim Holding are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Global Yatirim i.e., Global Yatirim and E Data go up and down completely randomly.

Pair Corralation between Global Yatirim and E Data

Assuming the 90 days trading horizon Global Yatirim Holding is expected to generate 1.1 times more return on investment than E Data. However, Global Yatirim is 1.1 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.1 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.03 per unit of risk. If you would invest  1,585  in Global Yatirim Holding on October 10, 2024 and sell it today you would earn a total of  226.00  from holding Global Yatirim Holding or generate 14.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Yatirim Holding  vs.  E Data Teknoloji Pazarlama

Global Yatirim Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Yatirim Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Global Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, E Data is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Global Yatirim and E Data

The main advantage of trading using opposite Global Yatirim and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Yatirim position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.

The idea behind Global Yatirim Holding and E Data Teknoloji Pazarlama 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.