Correlation Between Galatasaray Sportif and Peker Gayrimenkul

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

Diversification Opportunities for Galatasaray Sportif and Peker Gayrimenkul

-0.59

Correlation Coefficient

Galatasaray Sportif  Peker Gayrimenkul

Excellent diversification

The 3 months correlation between Galatasaray and Peker is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Peker Gayrimenkul

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to generate 0.54 times more return on investment than Peker Gayrimenkul. However, Galatasaray Sportif Sinai is 1.85 times less risky than Peker Gayrimenkul. It trades about -0.1 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about -0.05 per unit of risk. If you would invest  220.00  in Galatasaray Sportif Sinai on October 8, 2024 and sell it today you would lose (10.00) from holding Galatasaray Sportif Sinai or give up 4.55% of portfolio value over 90 days.

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

Galatasaray Sportif Sinai  vs.  Peker Gayrimenkul Yatirim

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galatasaray Sportif and Peker Gayrimenkul

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

The idea behind Galatasaray Sportif Sinai and Peker Gayrimenkul 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.