Correlation Between Sekerbank TAS and Gozde Girisim

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

By analyzing existing cross correlation between Sekerbank TAS and Gozde Girisim Sermayesi, you can compare the effects of market volatilities on Sekerbank TAS and Gozde Girisim 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 Sekerbank TAS with a short position of Gozde Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Gozde Girisim.

Diversification Opportunities for Sekerbank TAS and Gozde Girisim

0.31

Correlation Coefficient

Sekerbank TAS  Gozde Girisim

Weak diversification

The 3 months correlation between Sekerbank and Gozde is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Gozde Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gozde Girisim Sermayesi and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Gozde Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gozde Girisim Sermayesi has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Gozde Girisim go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Gozde Girisim

Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 0.91 times more return on investment than Gozde Girisim. However, Sekerbank TAS is 1.1 times less risky than Gozde Girisim. It trades about 0.17 of its potential returns per unit of risk. Gozde Girisim Sermayesi is currently generating about -0.14 per unit of risk. If you would invest  459.00  in Sekerbank TAS on October 6, 2024 and sell it today you would earn a total of  34.00  from holding Sekerbank TAS or generate 7.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Sekerbank TAS  vs.  Gozde Girisim Sermayesi

Sekerbank TAS

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Sekerbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Gozde Girisim Sermayesi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gozde Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Gozde Girisim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sekerbank TAS and Gozde Girisim

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

The idea behind Sekerbank TAS and Gozde Girisim Sermayesi 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.