Correlation Between OZYASAR TEL and Galata Wind

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

Diversification Opportunities for OZYASAR TEL and Galata Wind

0.19
  Correlation Coefficient

Average diversification

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

Pair Corralation between OZYASAR TEL and Galata Wind

Assuming the 90 days trading horizon OZYASAR TEL is expected to generate 2.56 times less return on investment than Galata Wind. In addition to that, OZYASAR TEL is 1.25 times more volatile than Galata Wind Enerji. It trades about 0.07 of its total potential returns per unit of risk. Galata Wind Enerji is currently generating about 0.21 per unit of volatility. If you would invest  2,364  in Galata Wind Enerji on October 4, 2024 and sell it today you would earn a total of  848.00  from holding Galata Wind Enerji or generate 35.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

OZYASAR TEL  vs.  Galata Wind Enerji

 Performance 
       Timeline  
OZYASAR TEL 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in OZYASAR TEL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, OZYASAR TEL demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Galata Wind Enerji 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Galata Wind Enerji are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Galata Wind demonstrated solid returns over the last few months and may actually be approaching a breakup point.

OZYASAR TEL and Galata Wind Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OZYASAR TEL and Galata Wind

The main advantage of trading using opposite OZYASAR TEL and Galata Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OZYASAR TEL position performs unexpectedly, Galata Wind 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 Galata Wind will offset losses from the drop in Galata Wind's long position.
The idea behind OZYASAR TEL and Galata Wind Enerji 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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