Correlation Between Galatasaray Sportif and Marka Yatirim

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

Diversification Opportunities for Galatasaray Sportif and Marka Yatirim

0.51

Correlation Coefficient

Galatasaray Sportif  Marka Yatirim

Very weak diversification

The 3 months correlation between Galatasaray and Marka is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Marka Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marka Yatirim Holding 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 Marka Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marka Yatirim Holding has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Marka Yatirim go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Marka Yatirim

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to generate 0.53 times more return on investment than Marka Yatirim. However, Galatasaray Sportif Sinai is 1.89 times less risky than Marka Yatirim. It trades about -0.04 of its potential returns per unit of risk. Marka Yatirim Holding is currently generating about -0.13 per unit of risk. If you would invest  226.00  in Galatasaray Sportif Sinai on October 7, 2024 and sell it today you would lose (9.00) from holding Galatasaray Sportif Sinai or give up 3.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.67%
Values	Daily Returns

Galatasaray Sportif Sinai  vs.  Marka Yatirim Holding

Galatasaray Sportif Sinai

Risk-Adjusted Performance

0 of 100

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 fairly strong forward indicators, Galatasaray Sportif is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Marka Yatirim Holding

Risk-Adjusted Performance

8 of 100

OK

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

Pair Trading with Galatasaray Sportif and Marka Yatirim

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

The idea behind Galatasaray Sportif Sinai and Marka Yatirim Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.