Correlation Between Galatasaray Sportif and Zedur Enerji

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

Diversification Opportunities for Galatasaray Sportif and Zedur Enerji

-0.19

Correlation Coefficient

Galatasaray Sportif  Zedur Enerji

Good diversification

The 3 months correlation between Galatasaray and Zedur is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai and Zedur Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedur Enerji Elektrik 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 Zedur Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedur Enerji Elektrik has no effect on the direction of Galatasaray Sportif i.e., Galatasaray Sportif and Zedur Enerji go up and down completely randomly.

Pair Corralation between Galatasaray Sportif and Zedur Enerji

Assuming the 90 days trading horizon Galatasaray Sportif Sinai is expected to under-perform the Zedur Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Galatasaray Sportif Sinai is 1.19 times less risky than Zedur Enerji. The stock trades about -0.1 of its potential returns per unit of risk. The Zedur Enerji Elektrik is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,060  in Zedur Enerji Elektrik on September 29, 2024 and sell it today you would lose (163.00) from holding Zedur Enerji Elektrik or give up 15.38% of portfolio value over 90 days.

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

Galatasaray Sportif Sinai  vs.  Zedur Enerji Elektrik

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 latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Zedur Enerji Elektrik

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zedur Enerji Elektrik are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Zedur Enerji may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Galatasaray Sportif and Zedur Enerji

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

The idea behind Galatasaray Sportif Sinai and Zedur Enerji Elektrik 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..