Correlation Between Galatasaray Sportif and Aksu Enerji

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

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

Diversification Opportunities for Galatasaray Sportif and Aksu Enerji

0.08

Correlation Coefficient

Galatasaray Sportif  Aksu Enerji

Significant diversification

The 3 months correlation between Galatasaray and Aksu is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve and Galatasaray Sportif 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 Galatasaray Sportif Sinai are associated (or correlated) with Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Aksu Enerji go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Aksu Enerji

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to generate 5.24 times more return on investment than Aksu Enerji. However, Galatasaray Sportif is 5.24 times more volatile than Aksu Enerji ve. It trades about 0.05 of its potential returns per unit of risk. Aksu Enerji ve is currently generating about 0.02 per unit of risk. If you would invest  205.00  in Galatasaray Sportif Sinai on October 9, 2024 and sell it today you would earn a total of  13.00  from holding Galatasaray Sportif Sinai or generate 6.34% return on investment over 90 days.

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

Galatasaray Sportif Sinai  vs.  Aksu Enerji ve

Galatasaray Sportif Sinai

Risk-Adjusted Performance

3 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Galatasaray Sportif Sinai are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Galatasaray Sportif is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Aksu Enerji ve

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aksu Enerji ve are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Aksu Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galatasaray Sportif and Aksu Enerji

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

The idea behind Galatasaray Sportif Sinai and Aksu Enerji ve 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.