Correlation Between Verusaturk Girisim and GSD Holding

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

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

Diversification Opportunities for Verusaturk Girisim and GSD Holding

-0.06

Correlation Coefficient

Verusaturk Girisim  GSD Holding

Good diversification

The 3 months correlation between Verusaturk and GSD is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Verusaturk Girisim Sermayesi and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Verusaturk Girisim 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 Verusaturk Girisim Sermayesi are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Verusaturk Girisim i.e., Verusaturk Girisim and GSD Holding go up and down completely randomly.

Pair Corralation between Verusaturk Girisim and GSD Holding

Assuming the 90 days trading horizon Verusaturk Girisim Sermayesi is expected to under-perform the GSD Holding. But the stock apears to be less risky and, when comparing its historical volatility, Verusaturk Girisim Sermayesi is 1.11 times less risky than GSD Holding. The stock trades about -0.12 of its potential returns per unit of risk. The GSD Holding AS is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  408.00  in GSD Holding AS on September 21, 2024 and sell it today you would lose (31.00) from holding GSD Holding AS or give up 7.6% of portfolio value over 90 days.

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

Verusaturk Girisim Sermayesi  vs.  GSD Holding AS

Verusaturk Girisim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Verusaturk Girisim Sermayesi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

GSD Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Verusaturk Girisim and GSD Holding

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

The idea behind Verusaturk Girisim Sermayesi and GSD Holding AS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.