Correlation Between Peker Gayrimenkul and Galatasaray Sportif

Can any of the company-specific risk be diversified away by investing in both Peker Gayrimenkul and Galatasaray Sportif 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 Peker Gayrimenkul and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Peker Gayrimenkul Yatirim and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Peker Gayrimenkul and Galatasaray Sportif 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 Peker Gayrimenkul with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peker Gayrimenkul and Galatasaray Sportif.

Diversification Opportunities for Peker Gayrimenkul and Galatasaray Sportif

-0.71

Correlation Coefficient

Peker Gayrimenkul  Galatasaray Sportif

Pay attention - limited upside

The 3 months correlation between Peker and Galatasaray is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Peker Gayrimenkul Yatirim and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai and Peker Gayrimenkul 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 Peker Gayrimenkul Yatirim are associated (or correlated) with Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Peker Gayrimenkul i.e., Peker Gayrimenkul and Galatasaray Sportif go up and down completely randomly.

Pair Corralation between Peker Gayrimenkul and Galatasaray Sportif

Assuming the 90 days trading horizon Peker Gayrimenkul Yatirim is expected to generate 1.88 times more return on investment than Galatasaray Sportif. However, Peker Gayrimenkul is 1.88 times more volatile than Galatasaray Sportif Sinai. It trades about 0.16 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.09 per unit of risk. If you would invest  107.00  in Peker Gayrimenkul Yatirim on October 23, 2024 and sell it today you would earn a total of  40.00  from holding Peker Gayrimenkul Yatirim or generate 37.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Peker Gayrimenkul Yatirim  vs.  Galatasaray Sportif Sinai

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Galatasaray Sportif Sinai

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galatasaray Sportif Sinai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Peker Gayrimenkul and Galatasaray Sportif

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

The idea behind Peker Gayrimenkul Yatirim and Galatasaray Sportif Sinai 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.