Correlation Between Mobileye Global and Girisim Elektrik

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

By analyzing existing cross correlation between Mobileye Global Class and Girisim Elektrik Taahhut, you can compare the effects of market volatilities on Mobileye Global and Girisim 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 Mobileye Global with a short position of Girisim Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Girisim Elektrik.

Diversification Opportunities for Mobileye Global and Girisim Elektrik

-0.3

Correlation Coefficient

Mobileye Global  Girisim Elektrik

Very good diversification

The 3 months correlation between Mobileye and Girisim is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Girisim Elektrik Taahhut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Girisim Elektrik Taahhut and Mobileye Global 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 Mobileye Global Class are associated (or correlated) with Girisim Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Girisim Elektrik Taahhut has no effect on the direction of Mobileye Global i.e., Mobileye Global and Girisim Elektrik go up and down completely randomly.

Pair Corralation between Mobileye Global and Girisim Elektrik

Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the Girisim Elektrik. In addition to that, Mobileye Global is 1.33 times more volatile than Girisim Elektrik Taahhut. It trades about -0.08 of its total potential returns per unit of risk. Girisim Elektrik Taahhut is currently generating about 0.02 per unit of volatility. If you would invest  4,512  in Girisim Elektrik Taahhut on December 24, 2024 and sell it today you would earn a total of  48.00  from holding Girisim Elektrik Taahhut or generate 1.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

Mobileye Global Class  vs.  Girisim Elektrik Taahhut

Mobileye Global Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobileye Global Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Girisim Elektrik Taahhut

Risk-Adjusted Performance

Weak

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

Pair Trading with Mobileye Global and Girisim Elektrik

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

The idea behind Mobileye Global Class and Girisim Elektrik Taahhut 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.