Correlation Between Galata Wind and ODAS Elektrik
Can any of the company-specific risk be diversified away by investing in both Galata Wind and ODAS Elektrik 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 Galata Wind and ODAS Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galata Wind Enerji and ODAS Elektrik Uretim, you can compare the effects of market volatilities on Galata Wind and ODAS Elektrik 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 Galata Wind with a short position of ODAS Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galata Wind and ODAS Elektrik.
Diversification Opportunities for Galata Wind and ODAS Elektrik
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galata and ODAS is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Galata Wind Enerji and ODAS Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODAS Elektrik Uretim and Galata Wind 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 Galata Wind Enerji are associated (or correlated) with ODAS Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODAS Elektrik Uretim has no effect on the direction of Galata Wind i.e., Galata Wind and ODAS Elektrik go up and down completely randomly.
Pair Corralation between Galata Wind and ODAS Elektrik
Assuming the 90 days trading horizon Galata Wind Enerji is expected to generate 0.9 times more return on investment than ODAS Elektrik. However, Galata Wind Enerji is 1.11 times less risky than ODAS Elektrik. It trades about 0.03 of its potential returns per unit of risk. ODAS Elektrik Uretim is currently generating about -0.08 per unit of risk. If you would invest 2,642 in Galata Wind Enerji on September 23, 2024 and sell it today you would earn a total of 328.00 from holding Galata Wind Enerji or generate 12.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Galata Wind Enerji vs. ODAS Elektrik Uretim
Performance |
Timeline |
Galata Wind Enerji |
ODAS Elektrik Uretim |
Galata Wind and ODAS Elektrik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galata Wind and ODAS Elektrik
The main advantage of trading using opposite Galata Wind and ODAS Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galata Wind position performs unexpectedly, ODAS Elektrik 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 ODAS Elektrik will offset losses from the drop in ODAS Elektrik's long position.Galata Wind vs. Aksa Enerji Uretim | Galata Wind vs. Pamel Yenilenebilir Elektrik | Galata Wind vs. Metemtur Yatrm Enerji |
ODAS Elektrik vs. Turkiye Petrol Rafinerileri | ODAS Elektrik vs. Aksa Akrilik Kimya | ODAS Elektrik vs. Arcelik AS | ODAS Elektrik vs. Tofas Turk Otomobil |
Check out your portfolio center.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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