Correlation Between Galatasaray Sportif and Seker Finansal

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

Diversification Opportunities for Galatasaray Sportif and Seker Finansal

0.0

Correlation Coefficient

Galatasaray Sportif  Seker Finansal

Pay attention - limited upside

The 3 months correlation between Galatasaray and Seker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama 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 Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Seker Finansal go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Seker Finansal

If you would invest (100.00) in Seker Finansal Kiralama on October 6, 2024 and sell it today you would earn a total of  100.00  from holding Seker Finansal Kiralama or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Galatasaray Sportif Sinai  vs.  Seker Finansal Kiralama

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.

Seker Finansal Kiralama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seker Finansal Kiralama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Seker Finansal is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Galatasaray Sportif and Seker Finansal

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

The idea behind Galatasaray Sportif Sinai and Seker Finansal Kiralama 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.