Correlation Between GSD Denizcilik and Galatasaray Sportif

Can any of the company-specific risk be diversified away by investing in both GSD Denizcilik 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 GSD Denizcilik and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GSD Denizcilik Gayrimenkul and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on GSD Denizcilik 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 GSD Denizcilik with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Denizcilik and Galatasaray Sportif.

Diversification Opportunities for GSD Denizcilik and Galatasaray Sportif

0.85

Correlation Coefficient

GSD Denizcilik  Galatasaray Sportif

Very poor diversification

The 3 months correlation between GSD and Galatasaray is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GSD Denizcilik Gayrimenkul 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 GSD Denizcilik 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 GSD Denizcilik Gayrimenkul 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 GSD Denizcilik i.e., GSD Denizcilik and Galatasaray Sportif go up and down completely randomly.

Pair Corralation between GSD Denizcilik and Galatasaray Sportif

Assuming the 90 days trading horizon GSD Denizcilik Gayrimenkul is expected to under-perform the Galatasaray Sportif. In addition to that, GSD Denizcilik is 1.09 times more volatile than Galatasaray Sportif Sinai. It trades about -0.1 of its total potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.07 per unit of volatility. If you would invest  203.00  in Galatasaray Sportif Sinai on December 24, 2024 and sell it today you would lose (24.00) from holding Galatasaray Sportif Sinai or give up 11.82% of portfolio value over 90 days.

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

GSD Denizcilik Gayrimenkul  vs.  Galatasaray Sportif Sinai

GSD Denizcilik Gayri

Risk-Adjusted Performance

Very Weak

Over the last 90 days GSD Denizcilik Gayrimenkul has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Galatasaray Sportif Sinai

Risk-Adjusted Performance

Very Weak

Over the last 90 days Galatasaray Sportif Sinai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with GSD Denizcilik and Galatasaray Sportif

The main advantage of trading using opposite GSD Denizcilik and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Denizcilik 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.

The idea behind GSD Denizcilik Gayrimenkul and Galatasaray Sportif Sinai 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.