Correlation Between Galatasaray Sportif and Euro Kapital

Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif and Euro Kapital 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 Euro Kapital 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 Euro Kapital Yatirim, you can compare the effects of market volatilities on Galatasaray Sportif and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Euro Kapital.

Diversification Opportunities for Galatasaray Sportif and Euro Kapital

-0.71

Correlation Coefficient

Galatasaray Sportif  Euro Kapital

Pay attention - limited upside

The 3 months correlation between Galatasaray and Euro is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Euro Kapital go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Euro Kapital

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to generate 0.65 times more return on investment than Euro Kapital. However, Galatasaray Sportif Sinai is 1.54 times less risky than Euro Kapital. It trades about -0.03 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about -0.04 per unit of risk. If you would invest  216.00  in Galatasaray Sportif Sinai on October 11, 2024 and sell it today you would lose (4.00) from holding Galatasaray Sportif Sinai or give up 1.85% of portfolio value over 90 days.

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

Galatasaray Sportif Sinai  vs.  Euro Kapital Yatirim

Galatasaray Sportif Sinai

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Galatasaray Sportif Sinai are ranked lower than 1 (%) 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.

Euro Kapital Yatirim

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Kapital Yatirim are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Euro Kapital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galatasaray Sportif and Euro Kapital

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

The idea behind Galatasaray Sportif Sinai and Euro Kapital Yatirim 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.