Correlation Between GSD Holding and Is Yatirim
Can any of the company-specific risk be diversified away by investing in both GSD Holding and Is Yatirim 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 Holding and Is Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSD Holding AS and Is Yatirim Ortakligi, you can compare the effects of market volatilities on GSD Holding and Is Yatirim 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 Holding with a short position of Is Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSD Holding and Is Yatirim.
Diversification Opportunities for GSD Holding and Is Yatirim
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GSD and ISYAT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GSD Holding AS and Is Yatirim Ortakligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is Yatirim Ortakligi and GSD Holding 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 Holding AS are associated (or correlated) with Is Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Yatirim Ortakligi has no effect on the direction of GSD Holding i.e., GSD Holding and Is Yatirim go up and down completely randomly.
Pair Corralation between GSD Holding and Is Yatirim
Assuming the 90 days trading horizon GSD Holding is expected to generate 2.89 times less return on investment than Is Yatirim. But when comparing it to its historical volatility, GSD Holding AS is 1.75 times less risky than Is Yatirim. It trades about 0.03 of its potential returns per unit of risk. Is Yatirim Ortakligi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 820.00 in Is Yatirim Ortakligi on September 30, 2024 and sell it today you would earn a total of 44.00 from holding Is Yatirim Ortakligi or generate 5.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GSD Holding AS vs. Is Yatirim Ortakligi
Performance |
Timeline |
GSD Holding AS |
Is Yatirim Ortakligi |
GSD Holding and Is Yatirim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GSD Holding and Is Yatirim
The main advantage of trading using opposite GSD Holding and Is Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSD Holding position performs unexpectedly, Is Yatirim 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 Is Yatirim will offset losses from the drop in Is Yatirim's long position.The idea behind GSD Holding AS and Is Yatirim Ortakligi 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.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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