Correlation Between Hedef Girisim and GSD Holding

Can any of the company-specific risk be diversified away by investing in both Hedef Girisim and GSD Holding 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 Hedef Girisim and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hedef Girisim Sermayesi and GSD Holding AS, you can compare the effects of market volatilities on Hedef Girisim and GSD Holding 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 Hedef Girisim with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedef Girisim and GSD Holding.

Diversification Opportunities for Hedef Girisim and GSD Holding

0.81

Correlation Coefficient

Hedef Girisim  GSD Holding

Very poor diversification

The 3 months correlation between Hedef and GSD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Girisim Sermayesi and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Hedef Girisim 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 Hedef Girisim Sermayesi are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Hedef Girisim i.e., Hedef Girisim and GSD Holding go up and down completely randomly.

Pair Corralation between Hedef Girisim and GSD Holding

Assuming the 90 days trading horizon Hedef Girisim Sermayesi is expected to generate 1.61 times more return on investment than GSD Holding. However, Hedef Girisim is 1.61 times more volatile than GSD Holding AS. It trades about 0.2 of its potential returns per unit of risk. GSD Holding AS is currently generating about -0.01 per unit of risk. If you would invest  142.00  in Hedef Girisim Sermayesi on September 21, 2024 and sell it today you would earn a total of  16.00  from holding Hedef Girisim Sermayesi or generate 11.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.65%
Values	Daily Returns

Hedef Girisim Sermayesi  vs.  GSD Holding AS

Hedef Girisim Sermayesi

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hedef Girisim Sermayesi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Hedef Girisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

GSD Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hedef Girisim and GSD Holding

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

The idea behind Hedef Girisim Sermayesi and GSD Holding AS 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.

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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.