Correlation Between Turkiye Is and GSD Denizcilik

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Can any of the company-specific risk be diversified away by investing in both Turkiye Is and GSD Denizcilik 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 Turkiye Is and GSD Denizcilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and GSD Denizcilik Gayrimenkul, you can compare the effects of market volatilities on Turkiye Is and GSD Denizcilik 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 Turkiye Is with a short position of GSD Denizcilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and GSD Denizcilik.

Diversification Opportunities for Turkiye Is and GSD Denizcilik

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between Turkiye and GSD is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and GSD Denizcilik Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Denizcilik Gayri and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with GSD Denizcilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Denizcilik Gayri has no effect on the direction of Turkiye Is i.e., Turkiye Is and GSD Denizcilik go up and down completely randomly.

Pair Corralation between Turkiye Is and GSD Denizcilik

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 0.9 times more return on investment than GSD Denizcilik. However, Turkiye Is Bankasi is 1.11 times less risky than GSD Denizcilik. It trades about 0.31 of its potential returns per unit of risk. GSD Denizcilik Gayrimenkul is currently generating about -0.08 per unit of risk. If you would invest  1,285  in Turkiye Is Bankasi on October 22, 2024 and sell it today you would earn a total of  143.00  from holding Turkiye Is Bankasi or generate 11.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Turkiye Is Bankasi  vs.  GSD Denizcilik Gayrimenkul

 Performance 
       Timeline  
Turkiye Is Bankasi 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Is Bankasi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turkiye Is demonstrated solid returns over the last few months and may actually be approaching a breakup point.
GSD Denizcilik Gayri 

Risk-Adjusted Performance

11 of 100

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

Turkiye Is and GSD Denizcilik Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Turkiye Is and GSD Denizcilik

The main advantage of trading using opposite Turkiye Is and GSD Denizcilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, GSD Denizcilik 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 Denizcilik will offset losses from the drop in GSD Denizcilik's long position.
The idea behind Turkiye Is Bankasi and GSD Denizcilik Gayrimenkul 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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