Correlation Between Petrokent Turizm and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm 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 Petrokent Turizm and Galatasaray Sportif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrokent Turizm AS and Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Petrokent Turizm 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 Petrokent Turizm with a short position of Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Galatasaray Sportif.
Diversification Opportunities for Petrokent Turizm and Galatasaray Sportif
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petrokent and Galatasaray is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS 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 Petrokent Turizm 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 Petrokent Turizm AS 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 Petrokent Turizm i.e., Petrokent Turizm and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Petrokent Turizm and Galatasaray Sportif
Assuming the 90 days trading horizon Petrokent Turizm AS is expected to generate 1.51 times more return on investment than Galatasaray Sportif. However, Petrokent Turizm is 1.51 times more volatile than Galatasaray Sportif Sinai. It trades about 0.05 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.17 per unit of risk. If you would invest 22,500 in Petrokent Turizm AS on September 23, 2024 and sell it today you would earn a total of 1,800 from holding Petrokent Turizm AS or generate 8.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Petrokent Turizm AS vs. Galatasaray Sportif Sinai
Performance |
Timeline |
Petrokent Turizm |
Galatasaray Sportif Sinai |
Petrokent Turizm and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petrokent Turizm and Galatasaray Sportif
The main advantage of trading using opposite Petrokent Turizm and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrokent Turizm 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.Petrokent Turizm vs. Gentas Genel Metal | Petrokent Turizm vs. Galatasaray Sportif Sinai | Petrokent Turizm vs. Borlease Otomotiv AS | Petrokent Turizm vs. Politeknik Metal Sanayi |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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